QUESTIONS FOR DISCUSSION

1. Are information-gathering techniques like Rajaratnam's common on Wall Street? If

so, what could regulators, investors, and executives do to reduce the practice?
2. What are the implications of sharing confidential material information? Is it
something that would affect your decision about how to trade a stock if you knew
about it?
3. Do you think the secret investigation and conviction of Rajaratnam and other
people in the Galleon network will deter other fund managers and investors from
sharing nonpublic
information?
SOURCES
William Alden, "Roomy Khan, Figure in Galleon Insider Case, Sentenced to One Year
in Prison," New York Times, January 31, 2013,
http://dealbook.nytimes.com/2013/01/31/roomy-khan-figure-in-galleon-insider-case-
sentenced-to-one-year-in- prison/ (accessed February 20, 2015); Suzanna Andrews,
"How Gupta Came Undone." Bloomberg Businessweek, May 23-29, 2011, 56-63; Alex
Berenson, "For Galleon Executive, Swagger in the Spotlight," The New York Times,
November 1, 2009, http://www.nytimes.com/2009/11/02/business/o2insider.html
(accessed February 20, 2015); Chad Bray, "Insider Witness Sentenced," The Wall
Street Journal, February 1, 2013, C3; Chad Bray, "Rajaratnam, SEC Settle Gupta
Suit." The Wall Street Journal, December 28, 2012, C3; Chad Bray, Michael Rothfeld,
and Reed Albergotti, "Insider Case Lands Big Catch." The Wall Street Journal, June
15, 2012, http://www.wsj.com/articles/SB10001424052702303822204577468470878668722
(accessed February 20, 2015); Katherine Burton, "Danielle Chiesi's New Prison Home
More Camp Cupcake Than 'Chained Heat, Bloomberg, October 17, 2011,
http://www.bloomberg.com/news/2011-10-18/danielle-chiesi-s-new-prison-home-more-
camp- cupcake-than-chained-heat-.html (accessed February 20, 2015); Dealbook,
"Timeline of Key Events in the Galleon Case." The New York Times Dealbook, March 7,
2011, http://dealbook.nytimes.com/2011/03/07/timeline-of-key-events-in-the-
galleon-case (accessed February 20, 2015); Economist staff, "An unlucky man," June
14, 2012, The Economist, http://www .economist.com/blogs/schumpeter/2012/06/rajat-
gupta-trial (accessed February 20, 2015); Economist staff, "Who's Next?" The
Economist, June 23, 2012, 74; "Former Goldman Sachs Director Rajat Gupta seeks re-
hearing of insider trading conviction," The Economic Times, April 9, 2014,
http://articles.economictimes.indiatimes.com/2014-04-09/ news/48999807_1_rajat-
gupta-geetanjali-gupta-gary-naftalis (accessed February 20, 2015); "Galleon's Web."
The Wall Street Journal, March 10, 2011,
http://online.wsj.com/public/resources/documents/Galleons-Web.html (accessed
February 20, 2015); David Glovin, Patricia Hurtado, and Bob Van Voris, "Galleon's
Rajaratnam Talked on Tape about Goldman Board Source," Bloomberg Businessweek,
March 31, 2011, http://www.bloomberg.com/news/articles/2011-03-30/galleon-s-
rajaratnam-taped-talking-about-source-on-goldman-sachs-board (accessed February 20,
2015); David Glovin, Patricia Hurtado, and Bob Van Voris, "Rajaratnam Sought to
'Conquer' Wall Street, U.S. Tells Jurors," Bloomberg Businessweek. April 21, 2011,
http://www.bloomberg.com/news/articles/2011-04-20/raj-rajaratnam-corrupted-friends-
u-s-says-as-defense-team- responds (accessed February 20, 2015); Robert A. Guth and
Justin Scheck, "The Man Who Wired Silicon Valley." The Wall Street Journal,
December 30, 2009, http://www.wsj.com/articles/SB126204917965408363 (accessed
February 20, 2015); Patricia Hurtado, "Ex-Galleon Fund Manager Cardillo Gets 3
Years Probation," Bloomberg, October 25, 2012, http://www .bloomberg.com/news/2012-
10-25/ex-galleon-fund-manager-cardillo-gets-3-years-probation.html (accessed
February 20. 2015); Patricia Hurtado, "Galleon Ex-Trader Zvi Goffer, Brother Plead
Not Guilty to New Indictment," Bloomberg, April 19, 2011,
http://www.bloomberg.com/news/2011-04-19/former-galleon-trader-goffer-pleads-not-
guilty-to-latest-insider- charges.html (accessed February 20, 2015); Patricia
Hurtado and David Glovin, "Rajaratnam Appeal Judges Voice Concern Over U.S.
Wiretaps," Bloomberg, October 25, 2013,
http://www.bloomberg.com/news/2012-10-25/rajaratnam-appeal-judges- voice-concern-
over-u-s-wiretaps.html (accessed February 20, 2015); Patricia Hurtado and Bob Van
Voris, "Kumar Gets Probation for His Galleon Trial Cooperation," Bloomberg, July
19, 2012, http://www.bloomberg.com/news/2012-07-19/anil- kumar-gets-two-years-
probation-in-insider-trading-case.html (accessed February 20, 2015); Katten Muchin
Rosenman LLP, "Raj Rajaratnam Appeals $92 Million Civil Fine to Second Circuit
Court of Appeals," The National Law Review, November 9, 2014,
http://www.natlawreview.com/article/raj-rajaratnam-appeals-92-million-civil-fine-
to-second-circuit-court-appeals (accessed February 20, 2015); Zachery Kouwe and
Michael J. De la Merced, "Galleon Chief and Associate Indicted in Insider Case, The
New York Times, December 15, 2009,
http://www.nytimes.com/2009/12/16/business/16insider.html/?_r= (accessed February
20, 2015); Peter Lattman, "2 Defendants Sentenced in Insider Trading Case." The New
York Times.