Raj Rajaratnam seems to have a lot in common with his brother, Rengan Rajaratnam. They have the same initials R.R., both have managed their own hedge funds and BOTH have been involved with investigations for insider trading. Based on papers filed yesterday in New York federal court, Raj disclosed that he was deposed by federal authorities in 2007 in an insider-trading investigation involving “an unrelated hedge fund”, which was Sedna Capital Management and happened to be managed by the other R.R., Rengan Rajartnam as noted in an article in the Wall Street Journal.
Rengan managed Sedna Capital Management until late 2007, which is said to have been shut down after suffering losses and the costs of complying with the SEC investigation. It appears that the Galleon Group was requested to provide documents (about four million of them) in conjunction with the 2007 SEC investigation of Sedna Capital Management. The Wall Street Journal article also states that the status on the investigation of Sedna Capital Management isn’t clear, but based on what we know about Raj, it is probably not good.
