Prosecutors in the Galleon Group insider trading investigation are working to secure new witnesses who could testify against Raj Rajaratnam, the billionaire founder of Galleon, and others charged in the case.
The New York Times reports that Galleon prosecutors told a federal judge on Tuesday that Mark Kurland has waived an indictment, an indication he intends to plead guilty in the case.
Kurland, a top executive of New Castle Funds, a hedge fund unit that was spun out of Bear Stearns Asset Management, is accused of conspiring with Danielle Chiesi to trade stocks based on secret corporate information. Kurland would be the seventh person charged in the case to agree to assist investigators with the hope of receiving a reduced sentence.
Two other individuals in the case, a former I.B.M. executive, Robert W. Moffat Jr., and an Intel executive, Rajiv Goel, are continuing discussions with prosecutors regarding a “potential disposition” according to court filings.