Raj Rajaratnam Insider Trading Conviction Upheld By U.S. Appeals Court in Manhattan

Convicted insider trader Raj Rajaratnam lost a bid to overturn his conviction on Monday, as a New York federal court ruled that investigators used wiretapping techniques properly in their work, Bloomberg reports.

Rajaratnam, a founder of Galleon Group LLC, was convicted in May 2011 for conspiracy and securities fraud. His conviction centered on the largest hedge fund insider trading scheme in U.S. history, and he is now serving an 11-year prison term.

Rajaratnam’s lawyers argued that an FBI agent asked a federal judge for permission to wiretap Rajaratnam without exhausting other means and by failing to discuss the reliability of a relevant witness, according to Reuters.

Spokesmen for government prosecutors and Rajaratnam declined to comment to Reuters.

Former Goldman Sachs Group Inc. (NYSE:GS) Director Rajat Gupta is waiting to hear from the same appeals court on overturning his own insider trading conviction. He made similar arguments about improperly applied wiretapping techniques.

Here is the full opinion from the appellate court.