Rajaratnam, Chiesi, court showdown looms

December 16, 2009 | By Jim Kim

A federal grand jury has handed down indictments of Raj Rajaratnam and Danielle Chiesi, two figures said to be at the heart of a massive insider trading scheme. These formal charges come two weeks after they were rounded up by law enforcement officers. US prosecutors have to decide this week whether to obtain indictments for at least four other people accused in the case or ask a judge for a 30-day postponement, the Financial Times notes.

Both have indicated they will fight the charges. One thing is for sure. This case goes beyond mere incriminating (on the surface) emails. The array of evidence will also include wiretaps and cooperating witnesses. A lot of hedge funds will watch this very closely. So will a lot of other prosecutors thinking about bringing financial crime cases.

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