David Siegal in Reuters, Says Galleon Case Bears No Factual Relationship to New FrontPoint Partners Charges
As lawyers for Raj Rajaratnam tried to poke holes in the federal government's insider trading case against the Galleon Group co-founder, prosecutors were charging another former star hedge fund manager with getting illegal stock tips.
Yet with the case against Rajaratnam likely just days from going to a jury, some in the legal community said it is fair to wonder about the timing of those new charges, against former FrontPoint Partners LLC manager Joseph "Chip" Skowron, in a case prosecutors have been building for several months.
Lawyers said they would not be surprised if John Dowd, Rajaratnam's lead lawyer, suggested to presiding Judge Richard Holwell that news about Skowron could taint his client's jury.
But they also said Holwell could rely on or even repeat earlier instructions to jurors not to read the newspapers or consider evidence other than what they hear in the courtroom.
"The Justice Department can argue that the wheels of justice are not going to stop because someone is on trial in a case that has no factual relationship to a different case," said David Siegal, a partner at Haynes and Boone LLP in New York and former federal prosecutor.
Once Rajaratnam's case is in the jurors' hands, though, anything could happen.
Excerpted from Reuters. To view the full article, click here.