How many more to be charged in scandal?

October 20, 2009 | By Jim Kim

We need a name for this scandal. The "Raj Rajaratnam scandal" just doesn't have the same ring as the "Madoff affair." The pending crackdown is apparently still unfolding. It was in the works for more than two years, but the feds hand was forced to a certain extent when Rajaratnam booked a flight to London, reports the Boston Globe. They had no choice but to swoop in and arrest him and others.

The question is: How many more will be implicated? Other hedge fund managers and their associates are presumed to be in the sights of prosecutors. Most anticipate action this week or perhaps early next week. The SEC has a lot riding on this. They are keen on proving that it is up to the task of policing Wall Street.

We'll hear about its data mining and other high-tech techniques perhaps. Anything to put it in a favorable light. The other bit of suspense concerns how the principals will plead. I think it's 50-50 on Rajaratnam. There's also some suspense around whether one of his one-time cronies could turn on him. In any case, not much suspense on the future of Galleon, which most consider toast.

For more:
- here's the article