The Galleon Group managed approximately $3.7 billion spread across several hedge funds. In late 2008, the company found itself at the center of an insider trading case involving the firm's founder, Raj Rajaratnam. Rajaratnam and a co-defendant, Danielle Chiesi, have been charged with conspiracy and securities fraud. They have denied wrongdoing. The firm's investment funds were dissolved following the charges in October 2009, as investors scrambled to withdraw their money.
The story continues to make news due to the high stature of the 21 people who have been charged in the insider-trading probe, 12 of whom have pleaded guilty to criminal charges. A number of quotations released from wiretaps have also drawn heavy attention to what has been called the largest hedge fund insider trading case in history. Because of the unresolved nature of this case, this could be an especially toxic company to have on one's resume. (For more, check out Top 4 Insider Trading Scandals.)
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