Hedge Fund Insider Trading Scandal Escalates-Galleon Group Fund Manager had Tip On Cisco Takeover of Starent

A former Galleon Group fund manager says that Raj Rajaratnam knew days before his arrest that Cisco System had a major acquisition in the works with the $2.9 billion purchase of telecommunications giant Starent Networks. Rajaratnam, Galleon’s founder was arrested as part of the largest U.S. hedge fund insider case in history. Prosecutors revealed that Rajaratnam told former McKinsey & Co consultant Anil Kumar, now a cooperating government witness, that he learned Cisco would soon be buying Starent. It is unclear at this time where the tip came from.