Rajaratnam And The Woes Of Insider Trading (IBM, INTL, AMD)

Galleon Group, a hedge fund run by Mr. Rajaratnam, had made him a billionaire and that business was based on contacts. Mr. Rajaratnam and 20 others who profited from insider information were indicted.

According to The Wall Street Journal, the Galleon investigation has already touched McKinsey & Co., International Business Machines Corp., (NYSE: IBM) Intel Corp. (NASDAQ: INTL) and Advanced Micro Devices Inc. (NYSE: AMD) in connection with the leaking of confidential information that Mr. Rajaratnam allegedly traded on. Intel held internal meetings to try to figure out how Mr. Rajaratnam's published reports were so uncannily accurate ahead of the company's earnings.