Superseder in Galleon Hedge Fund Case

MANHATTAN (CN) - Federal prosecutors on Tuesday issued a 19-count superseding indictment accusing Raj Rajaratnam and Danielle Chiesi of pulling off what the government calls the largest hedge fund inside-trading case in history. Rajaratnam managed Galleon Management and Chiesi worked for New Castle Partners, formerly the equity hedge fund group of Bear Stearns.

Based on guilty pleas from Anil Kumar and Mark Kurland, and other evidence, the superseding indictment claims Rajaratnam and Chiesi made millions of dollars for themselves and their hedge funds by trading on inside information about Intel, IBM, Akamai Technologies, Polycom, Hilton Hotels Google, Sun Microsystems, Clearwire Corp., Advanced Micro Devices, ATI Technologies, eBay, and PeopleSupport.

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