Could Raj Rajaratnam’s insider-trading ring have been stopped eight years ago? Pretty much, yeah, according to an internal JPMorgan memo. The 2001 “call note” recommended that JPMorgan reduce the amount of money it had in Galleon, Rajaratnam’s hedge fund, noting that Galleon “liked to operate in the ‘grey areas’” of the market. It concluded: “If these allegations are true, there are some serious issues about business conduct.” Yeah, serious issues indeed.
Or maybe Rajaratnam’s insider-trading could have been stopped nine years ago. In 2000 an Intel employee passed information to Galleon and was prosecuted for it. But the feds chose not to go after Galleon, instead allowing Rajaratnam to continue breaking the law inside of his bubble of rap videos and spandex.