Galleon hedge fund founder hit with further charges in US; filing alleges payment for inside tip on AMD, ATI Technologies deal

Galleon hedge fund founder Raj Rajaratnam is facing further charges in the US over claims that he paid an insider for information about the takeover of ATI Technologies by microchip giant AMD.

Rajaratnam was accused in 2009 of trading on insider information about a number of big-name firms, including Google and Hilton, allegedly making around USD17 million in the process.

A number of individuals have been implicated in the case, from hedge fund managers to major figures at some of the firms involved.

Federal prosecutors have now accused Rajaratnam of making a profit of USD19 million from the purchase of ATI in 2006, by making “large payments in exchange for inside information in or about 2004”, according to the filing, which came as the billionaire sought to reduce his USD100 million bail.

Rajaratnam’s has denied all of the charges against him, including the latest filing, which has brought the total alleged fraud to the figure of USD36 million.