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Raj Rajaratnam: It’s fine to scam the public but his real crime was front running Goldman Sachs!

Raj Rajaratnam founded and ran the Galleon Group hedge fund and found out Warren Buffett was going to be investing into Goldman Sachs. So he learned his lesson: never try to play the players! That is a cardinal sin for the justice department. Locking up corrupt Wall Streeters who scam the public? Not so much…

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So that chapter on equal justice? You need to change one important point.

As you know, Raj Rajaratnam founded and ran the Galleon Group hedge fund, which helped make him one of the richest people in America– worth over $1.5 billion dollars.
And yes– he was arrested by the FBI in October 2009 for insider trading which had occurred about a year earlier when Raj learned that Warren Buffet would invest in Goldman Sachs. When Raj found that out, he jumped in and bought the Goldman stock near its all time low during the financial crisis.

On this single move, he realized profits of over $60 million dollars.
Raj was tried by the Justice Department, convicted and sentenced to 11 years in prison.
But here is the thing– Raj was not prosecuted by the Justice Department for scamming the taxpayer. He was not prosecuted for scamming his clients.

Raj was prosecuted for scamming Goldman Sachs and Warren Buffet. Look in this game no one really has a problem if you make an inside trade to get ahead of the hoi palloi, but if you step on the toes of some real players—that is a no no. And everyone understands that: the Justice Department, the players in the game, and especially Raj.

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