On October 16, 2009, Raj Rajaratnam was arrested and charged with trading or conspiring to trade in securities on the basis of inside information. Following his arrest, the government served his employer, Galleon Management LP, with three grand jury subpoenas. On December 15, 2009, a grand jury returned an indictment alleging that Mr. Rajaratnam traded or conspired to trade in the securities of nine identified issuers. On February 9, 2010, the grand jury returned a Superseding Indictment alleging that Mr. Rajaratnam conspired to trade in the securities of three additional issuers. By letter dated March 22, 2010, the government identified additional issuers not previously addressed in the Superseding Indictment.
On January 13, 2011, the government filed an application for leave to issue to Galleon a subpoena duces tecum returnable before trial pursuant to Rule 17(c) of the Federal Rules of Criminal Procedure. The subpoena requested, among other things: (1) OMS Data, a form of electronic trading record that identifies the portfolio manager and trader responsible for executing a given trade; (2) documents in which Mr. Rajaratnam acknowledged Galleon's insider trading policies; and (3) certain emails and other communications related to specific issuers. Mr. Rajaratnam, joined by Galleon, moved for an order denying the government's requests on the basis that the government was not entitled to pre-trial production under Rule 17(c). The court denied this motion on February 2 and granted the government leave to serve the subpoena.
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