US billionaire probed for LTTE terror link
A US-based hedge-fund billionaire charged as part of an
insider-trading case was investigated by US authorities for allegedly
raising funds for the Liberation Tigers of Tamil Eelam (LTTE), The Wall
Street Journal reported.
Citing people familiar with the probe, the newspaper said federal
agents had uncovered documents showing that Raj Rajaratnam, founder of
the Galleon Group, was among several wealthy Sri Lankans in the United
States whose donations to a Maryland-based charity made their way to the
LTTE. Rajaratnam, 52, was among six people arrested Friday.
The Federal Bureau of Investigation said this is the largest-ever,
hedge-fund insider-trading case, the paper noted.
among six arrested in largest-ever hedge - fund insider trading
* Rajaratnam, co-conspirators
allegedly earned $ 20 m in improper gains.
Prosecutors allege Rajaratnam and his ring of alleged co-conspirators
earned US$ 20 million in improper gains, the report said.
Rajaratnam’s New York-based Galleon fund firm manages $ 3.7 billion
in investments. Jim Walden, an attorney for Rajaratnam, said his client
is innocent and will fight the charges, according to the paper.
As part of a separate terrorism probe, which was led by the FBI in
Brooklyn, New York, eight other people have pleaded guilty to attempting
to provide material support to the LTTE, designated as a terrorist
organization by the United States, The Journal noted.
Documents in a federal criminal complaint filed in US District Court
in New York’s Eastern District include allegations by federal agents
that money donated to a US charity called Tamil Rehabilitation
Organization, or TRO USA, of Cumberland, Maryland, was funnelled to the
Tigers insurgency, the paper noted.
The case was brought against Karunakaran Kandasamy, described by
prosecutors as the head of the US branch of the LTTE, The Journal said.
In the same case, an FBI agent cites documents uncovered in
court-authorized searches as showing donations to TRO USA made by a
person identified only as “individual B.”