Former Galleon Chairman Raj Rajaratnam will have to spend the next 11 years in jail, unless his attorneys can convince a judge to throw out his insider-trading conviction by taking aim at the most compelling evidence provided by government prosecutors: wiretap conversations showing that Rajaratnam traded stocks based on a series of illegal tips.
And some legal experts say it could work.
The FOX Business Network has learned that in their appeal, Rajaratnam’s attorneys at the law firm of Akin Gump Strauss Hauer & Feld will try and show that the government’s application to wiretap conversations between Rajaratnam and government informants left out important pieces of information that might have persuaded a federal judge not to grant the wiretap application in the first place.
Read more: http://www.foxbusiness.com/markets/2011/10/13/rajaratnams-attorneys-plot-aggressive-appeal-strategy/#ixzz1agh6elS1
http://www.martinarmstrong.org/files/End%20of%20Times%20for%20Hedge%20Funds%2005-15-2011.pdf
The original theory emerged from the Great Depression where a director, knowing the company was bankrupt, withheld that info so he could sell his stock.