Join NexChange - the professional
network for the financial services
industry - and receive a free one-
year subscription to Forbes
Raj Rajaratnam sued by brother Rengan
Raj Rajaratnam is not a happy man. Not only does he still have nine years left on his prison sentence, but apparently, he’s having family problems as well.
According to Reuters, the once high-flying Galleon chief was recently sued by his younger brother Rengan, who claims that Raj, as well as Galleon, owe him over $13 million in unpaid performance fees and legal costs.
Rengan, who was cleared of insider trading charges following his brother’s conviction, alleges that Galleon failed to pay him his 10% share on the $83 million he made for the fund back in 2009, and not only that, he also claims the fund stiffed him for up to $1 million over his stock recommendations, among other things:
“He said Galleon also wrongly did not pay him up to $1 million for telecommunications stock recommendations he made in his other role as an analyst, and also failed to advance his legal fees and costs during the insider trading case.
As a result, Rengan Rajaratnam said he had to pay $2 million in legal fees out-of-pocket and may owe another $2 million. Galleon also failed to help cover any of the $840,000 civil settlement he reached with the U.S. Securities and Exchange Commission after his acquittal, the lawsuit said.”
Raj, who recently had an awkward reunion with Rajat Gupta in Ayer, probably isn’t too pleased about this.
Photo: Marc Treble