AP News

NY brother of hedge fund founder pleads not guilty

NEW YORK (AP) — The brother of a jailed one-time billionaire hedge fund boss has entered a not guilty plea to federal insider trading charges.

Rengan Rajaratnam (RAYN'-gehn rah-juh-RUHT'-nuhm) appeared Monday in a Manhattan courtroom. He was indicted last week on conspiracy and securities fraud charges.

He was accused of conspiring with his brother, Raj Rajaratnam. The one-time billionaire founder of the Galleon Group of hedge funds is serving an 11-year prison sentence for his 2011 insider trading conviction. Prosecutors say he made as much as $75 million.

Federal authorities say 42-year-old Rengan Rajaratnam conspired from 2006 to 2008 to make illegal trades. They say he made more than $3 million in illicit gains.

His lawyer says Rajaratnam voluntarily surrendered after returning from Brazil on Sunday to "clear his name."

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