Big fish sinks
Raj Rajaratnam, the billionaire co-founder of Galleon Group Hedge Fund has been found guilty of insider-trading, fraud and conspiracy. He illegally traded on 35+ stocks including names like Intel, IBM, Hilton and Google. Charged in 2009, Rajaratnam had remained free on a US$100 million bond as he mounted a robust US$20 million defense.
The FBI finally indicted Rajaratnam after investigations led to incriminating phone conversations and confidential informants. The investigation also had ripple-effects as dozens more were implicated - of whom many have pleaded guilty.
In light of our own little financial disaster, there are lessons for us in this: firstly, the biggest of fish can be indicted regardless of how strong a fort of money he/she builds; secondly, a focused, rigorous investigation can help authorities uncover entire criminal networks and thirdly, that landmark indictments like this can be a deterrent for future financial-criminals.
Going after The Rich and The Guilty, therefore, can send a strong, positive message to the market, the criminals and the common people.
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