Sri Lanka-born U.S. business tycoon Raja Rajaratnam, arrested last week on charges of vast insider trading, on Thursday notified to the employees and clients of Galleon Group his intent to “conduct an orderly wind down” of the firm’s hedge funds.
In a letter Mr. Rajaratnam said: “I have decided that it is now in the best interest of our investors and employees to conduct an orderly wind down of Galleon’s funds while we explore various alternatives for our business”.
“At this important time, I want to reassure investors of the liquidity of our funds and assure Galleon employees that we are seeking the best way to keep together what I believe is the best long/short equity team in the business.”
He maintained that Galleon Group business was built on the fundamental belief in rigorous investment analysis combined with active trading and encouraged investors to attend daily research meetings.
On the charges against him Mr. Rajaratnam said: “I want to reiterate that I am innocent of all charges and will defend myself against these accusations with the same intensity and focus I have brought to managing our investors’ capital.”
Mr. Rajaratnam (52) was among six persons arrested last Friday on charges of securities fraud and conspiracy to commit securities fraud. Sri Lankan Foreign Minister Rohitha Bogollagama told Parliament on Thursday that the arrest was a “significant development in the area of the LTTE’s financing network”.