17 Oct 2009

US court charges six over massive insider trading

5:02 pm on 17 October 2009

A court in New York has charged six people with involvement in what's believed to be the largest hedge fund insider-trading scheme ever.

The defendants are alleged to have pocketed about $NZ27 million in illegal profits.

They are said to have secured inside information regarding firms including Google and Hilton Hotels.

The six accused include a Sri Lankan-born fund manager, Raj Rajaratnam, reputed to be one of America's richest men.

Prosecutors claimed the insider trading also took place at the New Castle hedge fund and Intel Capital, the investment arm of microchip giant Intel.