We've noted that it looks like Raj Rajaratnam intends to go to the mat against the SEC on the insider trading charges against him. The New York Times offers a preview of what might be his defense. For one thing, as we suggested before, he seems to be attacking the government's use of wiretaps. He's trying to invalidate evidence by pushing the line that is wasn't an honest application because it said it was "too risky" to interview him after it had already interviewed him and there were no impediments to interviewing further.

If the wiretap evidence is invalidated, the case may well be dropped. You would have to be skeptical that a case could be built on witnesses alone. No matter what, his lawyers also indicate that they will take a traditional defense, arguing he didn't trade on insider information. He's not denying the connections but simply stating the information he traded on was more complex and multifaceted. There's a lot riding on this for the government. It badly needs a win after the Ralph Cioffi and Matthew Tannin fiasco.   

For more:
- here's the article

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