![]() ![]() But if the information did not come from an insider, or if it was being relayed for a legitimate corporate purpose such as to set the record straight about the company, then it is not illegal. Rajaratnam of simply talking to people and then trading. However, some of the government's other allegations accuse Mr. Paying for confidential corporate information is and should be illegal because it is improper to bribe an executive to betray his duty of confidence to his employer. Goel's benefit in a private brokerage account. ![]() Rajaratnam made about $579,000 trading on this information, and that he "paid" for the tips by placing profitable trades for Mr. Rajaratnam about Clearwire that he learned at Intel. ![]() 8, 2010, former Intel executive Rajiv Goel pleaded guilty to leaking information to Mr. Rajaratnam appear well-grounded in the law. Some of the government's accusations in U.S. But the Supreme Court has long made it clear that getting tips from sources inside companies and trading on those tips is not necessarily illegal. According to government prosecutors, Raj Rajaratnam, co-founder of the hedge fund Galleon Group, made millions of dollars in illegal profits by trading on tips about companies like Intel Corp., Goldman Sachs and Clearwire Corp.
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