From the Wall Street Journal
Federal prosecutors suffered the first defeat in their half-decade-long crackdown on insider trading Tuesday with the acquittal of Raj Rajaratnam's younger brother, a bracing reversal after a string of 81 convictions.
The loss in some ways represented prosecutors' efforts coming full-circle: The original investigation into Rengan Rajaratnam's trading years ago kick-started a probe into his older sibling that ultimately uncovered a network of hedge-fund managers and analysts sharing confidential tips and produced convictions that shook Wall Street.
|Rengan Rajaratnam far left with his defense team, Judge Naomi Buchwald presiding|
It took a federal jury less than four hours to find Rengan Rajaratnam, 43 years old, not guilty of taking part in that conspiracy. The acquittal followed a rebuke of parts of the government's case by the judge who presided over the three-week trial, and comes as an appeals court is weighing a decision in a separate case that could raise the bar for prosecutors pursuing such crimes.