Dowd Fires Back: Billionaire Hedge Fund CEO Denies Insider Trading Charges And Challenges Use Of Wiretaps

Raj Rajaratnam, the indicted billionaire hedge fund owner, today filed a 32 page answer to the SEC’s insider trading complaint. Among the highlights: (1) in the very first paragraph, Rajaratnam “denies that he received and/or traded on the basis of material non-public information” as alleged in the complaint; (2) the answer challenges the government’s “unprecedented use of electronic surveillance in this case,”

claiming that it violated Rajaratnam’s constitutional rights and Title III of the Omnibus Crime Control and Safe Streets Act of 1968; and (3) Dowd and Rajaratnam continue to challenge the credibility, and the government’s reliance on, its main source, identified as Roomy Khan.