07/08/2014 03:41 pm ET Updated Jul 08, 2014

Raj Rajaratnam's Brother Found Not Guilty Of Insider Trading


NEW YORK, July 8 (Reuters) - Rengan Rajaratnam, the younger brother of convicted Galleon Group founder Raj Rajaratnam, was cleared on Tuesday of conspiring with him to engage in insider trading while at the hedge fund, in a setback for U.S. prosecutors.

A federal jury in New York found Rengan Rajaratnam, a former portfolio manager at Galleon, not guilty of the one conspiracy count he faced following the mid-trial dismissal by a judge of two more serious fraud charges.

The verdict came more than three years after jurors in the same courthouse convicted Raj Rajaratnam, 57, for engaging in insider trading in a scheme that resulted in $63.8 million in illicit profit, earning him an 11-year prison sentence.

(Reporting by Nate Raymond; Editing by Noeleen Walder and Nick Zieminski)