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25 Nov 2009

Rajaratnam Says Government Case Against His Hedge Fund Is Unconstitutional

New York ( - The billionaire hedge fund manager is arguing that authorities violated his constitutional rights by taping telephone conversations between Rajaratnam and his clients, the Wall Street Journal reports.

Hedge fund managers and stock traders have been closely following the Government's case, as wiretapping is a common tactic for investigations into organized crime, terrorism, and drug running. This case is the first insider-trading prosecution based on Government wiretaps.

The Wall street Journal reported that Rajaratnam’s lawyers argued that wiretaps were used without first demonstrating that conventional investigative techniques were inadequate, as required under the Wiretap Act of 1968.