<p>The Sri Lankan American co-founder of the Galleon Group bought 400,000 additional shares of Hilton July 3, 2007, before the the hotel chain announced a takeover by private-equity firm Blackstone Group, a New York court was told Monday.<br />Previously, the hedge fund firm owned 475,700 Hilton shares.<br /><br />On the stand Monday in the biggest insider trading trial was witness Margaret Holloway, the then boss of former Moody's analyst Deep Shah, who was declared a fugitive two years ago and was recently located in Mumbai.<br /><br />Shah is accused of tipping off ex-Intel executive Roomy Khan about the Hilton takeover. Khan allegedly passed the information along to Rajaratnam.<br /><br />Prosecutors also alleged that Rajaratnam learned a day before the public that broadband provider Clearwire was going to land a $3.2 billion investment from a former Indian American Clearwire board member, Rajiv Goel.<br /><br />Prosecutors played several wiretaps in which Goel appears to give Rajaratnam inside information about the investment.<br /><br />Goel, who was also working for Galleon at the time, pleaded guilty to his role in the scheme and is now reportedly a key cooperating witness for the government.<br /><br />Rajaratnam is accused of making $45 million in what the government calls the largest insider-trading scheme in history, which has brought guilty pleas from more than 15 alleged associates and tipsters.<br /><br />Goel allegedly leaked Rajaratnam confidential information related to the Clearwire deal in a series of phone calls. In one transcript, Goel says: "Yesterday our board approved this deal."<br /><br />Taking the stand, Sriram Viswanathan, yet another Indian American executive for Intel, said in late 2007 Intel began to have discussions with Clearwire Corp. about creating a 4G network to give high-speed internet access to mobile phones.<br /><br />Viswanathan said Goel, who held a position at Intel's Treasury Group, would have had access to the proposed deal, code named "Project Rain", and that Goel likely did "a lot of the back-end negotiating about how to go about maximising the deal for Intel".<br /><br />A May 7, 2008, press release announced that Intel joined with Google, Comcast, Time Warner Cable and Bright House on a $3.2 billion investment in Clearwire, which was developing its "next generation" of 4G broadband internet with Sprint.<br /><br />Defence attorneys for Rajaratnam maintained that the Galleon founder learned of the allegedly privileged information from news articles and analyst reports.<br /><br />When questioned on these public sources of information, Viswanathan drew a clear distinction between press speculation and formal announcements.<br /><br />"It is a fact that there was a lot of speculation about the possibility," Viswanathan said.<br />Defence attorney Terence Lynam replied that speculation or not, signs pointed to a deal, and the market reacted.<br /><br />In December 2007, Intel executive Arvind Sodhani announced in a press release that he would resign from the Clearwire board of directors to avoid a conflict of interest.<br />Lynam said various news outlets speculated on the meaning of his resignation in January 2008, causing a 25 percent spike in Clearwire's stock.</p>
<p>The Sri Lankan American co-founder of the Galleon Group bought 400,000 additional shares of Hilton July 3, 2007, before the the hotel chain announced a takeover by private-equity firm Blackstone Group, a New York court was told Monday.<br />Previously, the hedge fund firm owned 475,700 Hilton shares.<br /><br />On the stand Monday in the biggest insider trading trial was witness Margaret Holloway, the then boss of former Moody's analyst Deep Shah, who was declared a fugitive two years ago and was recently located in Mumbai.<br /><br />Shah is accused of tipping off ex-Intel executive Roomy Khan about the Hilton takeover. Khan allegedly passed the information along to Rajaratnam.<br /><br />Prosecutors also alleged that Rajaratnam learned a day before the public that broadband provider Clearwire was going to land a $3.2 billion investment from a former Indian American Clearwire board member, Rajiv Goel.<br /><br />Prosecutors played several wiretaps in which Goel appears to give Rajaratnam inside information about the investment.<br /><br />Goel, who was also working for Galleon at the time, pleaded guilty to his role in the scheme and is now reportedly a key cooperating witness for the government.<br /><br />Rajaratnam is accused of making $45 million in what the government calls the largest insider-trading scheme in history, which has brought guilty pleas from more than 15 alleged associates and tipsters.<br /><br />Goel allegedly leaked Rajaratnam confidential information related to the Clearwire deal in a series of phone calls. In one transcript, Goel says: "Yesterday our board approved this deal."<br /><br />Taking the stand, Sriram Viswanathan, yet another Indian American executive for Intel, said in late 2007 Intel began to have discussions with Clearwire Corp. about creating a 4G network to give high-speed internet access to mobile phones.<br /><br />Viswanathan said Goel, who held a position at Intel's Treasury Group, would have had access to the proposed deal, code named "Project Rain", and that Goel likely did "a lot of the back-end negotiating about how to go about maximising the deal for Intel".<br /><br />A May 7, 2008, press release announced that Intel joined with Google, Comcast, Time Warner Cable and Bright House on a $3.2 billion investment in Clearwire, which was developing its "next generation" of 4G broadband internet with Sprint.<br /><br />Defence attorneys for Rajaratnam maintained that the Galleon founder learned of the allegedly privileged information from news articles and analyst reports.<br /><br />When questioned on these public sources of information, Viswanathan drew a clear distinction between press speculation and formal announcements.<br /><br />"It is a fact that there was a lot of speculation about the possibility," Viswanathan said.<br />Defence attorney Terence Lynam replied that speculation or not, signs pointed to a deal, and the market reacted.<br /><br />In December 2007, Intel executive Arvind Sodhani announced in a press release that he would resign from the Clearwire board of directors to avoid a conflict of interest.<br />Lynam said various news outlets speculated on the meaning of his resignation in January 2008, causing a 25 percent spike in Clearwire's stock.</p>