Late last night, the FBI and SEC charged Galleon Group hedge fund founder Raj Rajaratnam with trading Google stock based on insider information.
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No Google employees have been been charged, however.
Basically what happened is Google hired a firm called Market Street Partners to help with their earnings calls.
The crime in question occured when, before Google announced its Q2 earnings on June 30, 2007, a Market Street employee told a Galleon Group employee that Google was going to announce earnings below market expectations.
Unfortunatly for that Market Street employee, the Galleon Group employee is now one of the FBI's co-operating witnesses. Busted!
