Of all the splashy stories of the Galleon Group insider trading case, the role of wiretaps has the most lingering significance for in-house counsel. Rarely used in white-collar cases, the wiretaps gave prosecutors a vivid picture of a sprawling network within the now-defunct, multibillion-dollar hedge fund that garnered inside tips to drive investment decisions. The question was: Would this hardball prosecutorial tactic stand up at trial?
The May conviction of Galleon Founder Raj Rajaratnam on all 14 counts against him seems to provide a resounding affirmative.
