A federal judge in Manhattan threw out two securities fraud charges against Rengan Rajaratnam, the younger brother of convicted insider trader and Galleon Group co-founder Raj Rajaratnam, Reuters reported Tuesday.
Rengan, a hedge fund manager who previously worked at Galleon as well as at Steven Cohen’s SAC Capital Advisors, still faces one count of conspiracy. A federal judge said Tuesday that there is not enough evidence that Rengan knew he was receiving illegally-obtained information before making trades of Clearwire and Advanced Micro Devices.
His older brother, Raj, is currently serving an 11-year prison term for his role in a wide-ranging insider trading scheme, which also netted a two-year sentence for former McKinsey head and Goldman Sachs board member Raj Gupta.