What do you do when you've been arrested for insider trading and your investors want to pull their capital from your funds? Deny everything and commence winding down your investments.
Originally claiming that all funds were liquid and everything was going to be alright, Raj Rajaratnam has changed his tune slightly. In a letter to employees and investors sent today, the accused founder said he has "decided that it is now in the best interest of our investors and employees to conduct an orderly wind down of Galleon's funds while we explore various alternatives for our business."
Galleon Group has about $3.7 billion under management. The redemption process that will begin now means investors who put their capital in the biggest fund won't get their money until January.
As for Galleon, it could be sold to an unidentified buyer interested in acquiring the firm. And just in case you were fooled by all the police and handcuffs, dear ol' Raj wants you to know he's innocent:
"The vpriilege of managing investors' capital is a responsibility that I have always taken very seriously. I want to reiterate that I am innocent of all charges and will defend myself against these accusations with the same intensity and focus I have brought to managing our investors' capital."
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