Galleon Group’s Raj Rajaratnam Paid For Inside Info

Thursday, January 7, 2010, 6:51 AM | Leave Comment

A while back, I did a post on Roomy Khan’s lawyer didn’t return calls for comment. Raj Rajaratnam’s name came into light along with Roomy Khan’s. Raj is the founder of hedge-fund firm Galleon Group. Wall Street Journal and other financial sources have reported that Mr. Rajaratnam made payment in 2006 to an unidentified source for a tip about an acquisition of ATI Technologies Inc. by Advanced Micro Devices Inc., reaping $19 million in illicit profit.

So far the fire that’s burning for this scam has allegedly engulfed 21 individuals. When indicted and convicted, they will go to jail. When these people make money, they make money in millions, not like us folks who have to watch for every penny going out of our pocket. Ours is hard-earned money. Theirs is easy come and I hope easy go. We will see what happens.

What do you do with $19 million? How do you spend it? Well, one way to spend it is to follow David Cerullo, the Chairman and CEO of Inspiration Networks. Sometimes I wonder what the difference is between Raj, Dave and others and the guy who quit a bad drug habit known as money.

Well, it’s a society based on capitalism. There is, I guess, nothing wrong with amassing money and building mansions. But the money that Raj and Roomy Khan have been collecting is not kosher. You just don’t do that, period.

On the other hand, America is still considered land of opportunities even with all its hardships. To take advantage from its abundance – legally, ethically – is I guess our right as long as you do it within the boundaries of the law.

In a Nutshell
Is there a way to stop a scam like this before it happens? Seems like an impossible task.

What do you think?

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