thank you for watching. [ticking] >> narrator: in this episode of "american greed"... it's one of the biggest cases of insider trading in history, and it's all caught on tape. raj rajaratnam had it all -- a wildly successful hedge fund, billions in the bank, and the respect of wall street. >> raj was a competitor first. he wanted to win. he wanted to win every day. >> narrator: but behind closed doors, rajaratnam was gaming the system -- to the tune of $75 million dollars. >> inside trading became his business model. >> narrator: and each time rajaratnam's phone is ringing, the feds are listening. and ultimately, it's his own voice that will seal his fate. >> it's kind of like taking a bite out of the forbidden fruit, except for here he was feasting

on the forbidden fruit. >> narrator: in january of 2008, raj rajaratnam is the head of a $7 billion hedge fund called galleon group. his fund is generating stellar returns for investors, and rajaratnam's phone is ringing off the hook. many of the calls are from corporate insiders providing a gold mine of market-moving information. on july 24th, just after 9:00 p.m., rajaratnam takes a call from danielle chiesi. the former beauty queen is now a hedge-fund trader and one of rajaratnam's best sources. chiesi has the inside track

on akamai, a company that manages internet traffic. she says the company will miss earnings. it's news that won't go public for six days. rajaratnam shorts the stock. in doing so, he will profit if the stock price falls. when earnings are announced on july 30th, the stock tumbles 25%, and rajaratnam clears more than $5 million. but downtown at the fbi, agents are listening in to his every word, building a case into the biggest insider-trading ring in history. the story of raj rajaratnam begins an ocean away in the south asian country of

sri lanka. >> when raj was growing up there, there was a civil war going on, and he grew up in relative prosperity. >> narrator: as a teen, rajaratnam leaves his home country to begin schooling in the western world. he studies engineering in england and then earns a masters degree at the prestigious wharton school of business. rajaratnam sets his sights on wall street. he heads to new york city and lands a job at needham & company. wall street journal reporter justin scheck says raj distinguished himself as a stock analyst covering the computer-chip industry. >> he was a great analyst by all accounts. raj had a knack for explaining how technologies worked and for telling people why they should invest. and he was the person who knew the most about the chip industry. >> narrator: rajaratnam proves to be a master networker. he forges tight relationships

and presses his sources for information. >> well, raj got people to talk. he -- he made executives feel comfortable and feel willing to confide in him. >> his sources became a long list of indian-born executives working at silicon valley firms. >> narrator: rajaratnam works his way up the ranks at needham. he is appointed head of research and then, in 1991, president. >> raj was a very tough boss. some people use the word "browbeat," you know, but he would -- he would make the people working for him work as hard as he did to get inside companies and to really get exclusive information. >> narrator: the lengths rajaratnam will go to to dig up information is a lesson quickly learned by gerald flemming, an analyst at needham. >> he had a rolodex on his desk with probably more contacts than anybody i've ever known. >> narrator: in may of 1991, there's a telling moment.

flemming makes an earnings projection for applied materials, a company that manufactures semi-conductor machines. >> at the morning meeting, i talked about my expectations. i felt that applied's earnings would be somewhere around 41 cents a share. >> raj went into his office, closed the door, made a phone call, and came out, and said, "no, you're off by a penny." >> and raj says, "i have it from a very good source that applied will report 42 cents a share this afternoon." >> narrator: hours later, the announcement is made, and flemming is stunned. rajaratnam had the exact number -- 42 cents per share -- before anyone else. >> after experiencing a couple of these episodes where raj had clearly gotten inside information, i started to become more and more wary about what -- what was going on. >> narrator: after 10 months on the job, flemming has had enough and quits. rajaratnam may be alienating

some with his hardball tactics, but his reach and power continue to expand. in 1992, he starts a hedge fund at needham. two years later, he is taking home $1 million a year. still, rajaratnam wants more. in november of 1996, he sets up shop in a small office on 57th street and launches his own hedge fund. he names it galleon group. >> raj named his new hedge fund galleon after spanish ships that would travel the world, carrying great wealth in the form of spices and -- and gold and all sorts of riches, and it was sort of a big name and to convey wealth. >> narrator: with investors anxious to ride the technology boom, funding comes easily. >> it was a real go-go, heavy-trading, fast-trading, and very profitable hedge fund from the -- the heyday of the hedge

funds. >> narrator: after just one year, rajaratnam has $800 million under management, and galleon is flying high. at his new firm, rajaratnam fosters a high-stakes environment. >> it's an intensely competitive environment, and if you don't produce, you get fired. >> narrator: rajaratnam leads by example and continues pressing his sources and trying to dig up exclusive information, but those tactics are continuing to raise some red flags. >> there were some executives in the valley who felt like raj was too aggressive. >> narrator: over at intel corporation, executives are having closed-door meetings about rajaratnam. >> and his research on intel that he would publish was extraordinarily accurate for a number of years and accurate to the point where top intel executives became concerned that raj was getting information leaked to him. >> narrator: intel executives decide to take action.

they set up hidden cameras around the office and wait. on march 6th, they capture video of a product-marketing engineer named roomy khan faxing confidential information. >> they caught an employee sending faxes to raj of very detailed numbers about chip orders from big computer makers and other details that raj could use to calculate approximately what the company's earnings would be, and it's really valuable information. >> narrator: intel reports khan to authorities, who launch an investigation. >> she actually went to work for galleon -- spent about a year there -- but in 2001 ended up pleading guilty. >> narrator: khan serves six months of house arrest, but rajaratnam slips by. investigators can't prove that he ever traded on the inside information, and the case is sealed. coming up on "american greed"... rajaratnam lands a new source and makes $23 million off a

single tip. >> he wanted to win. he was intensely competitive, and how he won mattered less he was intensely competitive, and how he won mattered less than winning. the president from interview: i talk to folks on rope lines and in coffee shops. people who have been out of work. you can tell it wears on them. narrator: he's fought to pull us out of economic crisis for three years. and he still is. president obama's plan keeps taxes down for the middle class, invests in education and asks the wealthy to pay their fair share. mitt romney and his billionaire allies can spend milions to distort the president's words. but they're not interested in rebuilding the middle class. he is. i'm barack obama and i

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>> narrator: in 2003, sri lankan-born raj rajaratnam is a self-made multimillionaire. his fund, galleon group, is growing rapidly and generating impressive returns for investors. but rajaratnam's success is not built on his trading expertise alone. it is built on his rolodex and a vast network of insiders who are funneling him information. >> for him, it wasn't just about getting rich. it was about winning. it was about knowing more than the other guy and making more on a company than the next fund. >> narrator: in 2006, rajaratnam sets his sights on a new source -- anil kumar, an old classmate from business school who now works at the prestigious consulting firm, mckinsey & company. >> kumar and mckinsey wanted

galleon to hire them as consultants. rajaratnam and kumar met in the fall of 2003 at a charity event in new york, and, on the way out, kumar basically said, "what's going on, raj? we've been trying to set up this business arrangement, and we don't even hear back from you." and rajaratnam replied, "i don't want mckinsey's help. i want your help." >> narrator: rajaratnam asks kumar to serve as his personal consultant and offers him $500,000 a year for his expertise. mckinsey forbids outside consulting, but rajaratnam persists. >> he said to kumar, "you work very, very hard. other people make a lot more money than you. you travel all the time, and you deserve better. so raj shrewdly reeled him in by appealing to his sense of being underappreciated. >> narrator: to evade detection, rajaratnam proposes an elaborate

cover-up -- using offshore accounts and shell companies to conceal the payments. soon, kumar is funneling rajaratnam secrets from his corporate clients. in 2006, he is consulting for a microprocessor maker called advanced micro devices, or amd. the company is in a top-secret bid to acquire ati, a graphics-chip company. >> and no one on wall street knew that this was happening or, when there were rumors floated, everyone thought it was crazy, didn't make sense, couldn't happen. rajaratnam knew it was gonna happen, and he knew because kumar knew and had told him, and kumar knew because he was in on all the strategy meetings. >> narrator: rajaratnam buys ati stock ahead of the acquisition and then sits back and waits. >> for an investor, information on a company is power. the more you know about a company and the sooner you know it, the better equipped you are

to beat the rest of the market. >> narrator: when the deal goes public, ati stock shoots up 25%, and rajaratnam clears $23 million. for rajaratnam, it's his best year to date. he takes home more than $300 million. rajaratnam appears to be living the american dream. he lives with his wife and three kids in a $17 million duplex on manhattan's east side. he owns a $5 million estate in exclusive greenwich, connecticut, and a vacation home in miami at the luxurious setai resort. >> raj had nice homes and provided very well for himself and his family. but he also spent a lot of money on charity. he was someone who was seen as very generous. [ telephone rings ] >> narrator: in 2007, galleon group's growth is explosive. rajaratnam has $7 billion under

management and expands into new offices on madison avenue. he now has more than 100 employees working for him, including tim pierotti, who manages a consumer-goods fund. >> raj worked very hard. he got to the office, i would say, at 7:30 every day. i think he rarely left before 7:30, 8:00. raj wanted to win every day, and he wanted guys around him who were very competitive and wanted to win. >> narrator: each day at galleon begins with the morning meeting, an event feared and dreaded by many employees. >> it was 8:35 sharp. raj would be at the head of a massive conference-room table. and you didn't know who was gonna get called on, and you just had to be prepared. >> what are your best bets? what's your trading strategy, based on what? >> and raj had a way of finding out what you didn't know. he wanted people to know that if you come to the morning meeting unprepared, you're gonna

pay for it. >> narrator: the culture at galleon is one of testing professional limits, but rajaratnam seems to revel in testing personal limits, too. >> he liked to play pranks on workers. and executives from taser, which makes stun guns, came to galleon to explain to galleon why they should invest in taser. they said, "our equipment is very safe. we can tase someone here." so, he said, "who wants to get tased? i'll give you $5,000." a woman on the trading desk took him up on it. and so they tased her. [ taser buzzes ] and she fell to the ground, and raj gave her $5,000. >> narrator: and on april fools' day, rajaratnam hires a dwarf to make a presentation to his staff. >> and raj said, "this person is our new analyst for small-cap companies." small-cap companies -- company with a small market capitalization. it was an april fools' joke, and he just wanted to, you know, make everyone laugh. >> narrator: rajaratnam is

playing by his own rules and seems unstoppable. [ telephone rings ] but when "american greed" returns, one of rajaratnam's trusted informants turns on him, returns, one of rajaratnam's trusted informants turns on him, and the feds pick up the case. [ male announcer ] feeling like a shadow of your former self?

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raj rajaratnam is running one of the world's largest and most powerful hedge funds. rajaratnam has cemented his reputation as a superstar on wall street and is relishing his success. >> he threw a lot of really good parties. >> narrator: in june, he charters a yacht for a raucous 50th birthday party, cruising along the manhattan skyline. and in september, he hires country legend kenny rogers to play a private concert. >> so, raj had this big cowboy-themed clambake at his home in greenwich. and, you know, kenny rogers was a favorite of raj's 'cause of his song -- you know, "the gambler." "know when to hold 'em, know when to fold 'em." and it was a song that raj really, really loved. >> kenny came with two tractor-trailers of equipment. he played for an hour. he played "the gambler" twice. >> narrator: on the surface, rajaratnam seems untouchable. but behind the scenes, his world

is beginning to unravel. for the past seven months, agents at the s.e.c. have been investigating rajaratnam on suspicions of insider trading after an anonymous tip led them to galleon. in february of 2007, s.e.c. agents subpoena galleon's electronic records. with more than 10,000 documents to review, the search is like looking for a needle in a haystack. >> the s.e.c. began sifting through massive numbers of -- of instant messages. and for six months, you know, they began to see more patterns of insider trading. >> narrator: but rajaratnam thinks he is protected. he has been diligent about covering his trail. >> rajaratnam basically told his core of trusted collaborators on the inside trading that they should get off instant messaging. they should do it on the phone because the i.m.s were gonna be

clocked by the s.e.c. >> narrator: after months of meticulous research, an investigator turns up a string of suspicious instant messages from someone with a screen name of roomy81. rajaratnam is subpoenaed and brought in for seven hours of questioning. >> and all of this kind of had the air of routineness -- registered investment advisor, s.e.c. wants to look at some of their records, wants to talk to the manager. these things happen a lot, so rajaratnam seemed to be kind of in a mood of, "i can game this thing." and he went in and told a lot of lies. >> narrator: when investigators ask about roomy81, rajaratnam provides a name. >> she turned out to be roomy khan, the woman who pled guilty to inside trading a decade earlier and had gone on probation. she was back in the game. >> narrator: days later,

investigators find their smoking gun. >> the s.e.c. lawyers found an i.m. that had roomy khan saying to raj, "do not buy polycom till i get guidance." polycom is a video-conferencing company, and guidance means the direction that their earnings are gonna go -- up or down. it seemed like very specific inside information. it was like the one moment when rajaratnam could not get his source to keep it vague on i.m. that should have been said over the phone, but she was trying to get it to him quickly and she said it on i.m. >> narrator: agents subpoena phone and trading records. they discover calls to a polycom employee, khan's apparent source. >> so, they began to build up this circumstantial case of -- of phone records showing that they were talking, trading records showing that they were trading the same stocks and

making a lot of money on them. >> narrator: it's a huge break, but investigators believe the case is still too circumstantial. what they need is one of rajaratnam's informants to flip. >> they have roomy khan. she was going to be a good target because she had the prior conviction, she was vulnerable, she actually was having financial trouble, and they had the i.m.s. but still, they didn't know, and once they tried to flip her, if it failed and she told rajaratnam, that might be the end of the case, so this was all very dicey, you know, nail-biting, white-knuckle stuff. >> narrator: on november 28, 2007, fbi agents approach roomy khan at her home in atherton, california. >> roomy khan lived in great splendor. her house had 6 1/2 bathrooms, a tennis court, swimming pool.

she allowed them in, and she lied and lied and lied some more, and then finally they brought out the i.m.s, including the "do not buy polycom till i get guidance." at which point she retreated to one of the 6 1/2 bathrooms and had a cry and came back out and said, "i know if i don't cooperate, i'm gonna go to jail." >> narrator: khan agrees to flip and becomes an fbi informant. now, with tape rolling, she calls rajaratnam and tries to bait him. >> i think he sensed that she was a weak link. he was always trying to get her off the phone, and she was trying to get him to stay on the phone long enough to say something a little bit incriminating, and on a couple of occasions in january '08 he did. >> narrator: investigators have what they need to win a judge's approval to tap rajaratnam's phone. it's an aggressive tactic rarely seen in white-collar cases.

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>> narrator: in march of 2008, raj rajaratnam is the target of a covert federal investigation. [ telephone rings ] agents suspect the hedge fund titan is the mastermind of a large insider-trading ring and are moving aggressively in their pursuit. josh klein is an assistant u.s. attorney working the case. >> and so, this began to look like a conspiracy or a series of conspiracies that straddled wall street and silicon valley. >> narrator: on march 10th, the wiretap goes live on rajaratnam's cellphone, and for the first time, agents are taken inside rajaratnam's world. [ beep ] >> hi, babe. >> hey, listen to me. >> yes, hon. >> hi, raj. >> hi, anil. how are you? okay, listen. there's something important that

i want to talk to you about, right? hey. hi. yes, tell me. [ pulsating tone ] >> narrator: calls pour in each day by the dozens. rajaratnam talks freely, never knowing that the fbi is listening. >> we were observing the criminal activity as it was happening. we had a window into these schemes as they were being hatched. >> narrator: in july, investigators pick up a series of calls with 42-year-old danielle chiesi, a trader at new castle hedge fund. >> danielle chiesi had a certain way about her. she was not afraid to use her feminine wiles, so to speak, to -- to get information. >> narrator: on july 24th, chiesi calls rajaratnam at 9:18 at night. she's got top-secret information on akamai, an internet-services company. >> this company was going to

guide down in its earnings. it was going to tell wall street that the results were not going to be what traders expected. that was gonna mean a hit to the stock. >> his voice was matter-of-fact most of the time. he was trying to get information, trying to find out what people knew. this was a man doing his job, but his job happened to be illegal. >> narrator: when the markets open, rajaratnam places his bet and shorts akamai. five days later, earnings are released. the stock tumbles $7 a share. the information pays big-time.

rajaratnam clears more than $5 million. >> she wanted approval and acceptance by the big boys. she wanted raj to tell her, "good job, girl," you know. "you did it." and so she would come to him with her tips, really expecting nothing in return. >> he reveled in the conquest. and in a lot of ways, chiesi kind of conflated that with sort of almost like sex. it was -- it was that stimulating to her. >> narrator: as investigators sift through hundreds of phone

calls, the other players in rajaratnam's circle begin to emerge. there is anil kumar, the consultant at mckinsey, rajiv goel, a personal friend and executive at intel, and rajat gupta, former head of mckinsey and a board member of goldman sachs and procter & gamble. each is risking their own career by providing rajaratnam with inside information. >> all this was going on while he knew that there was at least an s.e.c. investigation going on, and yet it was brazen because i think he just didn't think he could get caught. >> narrator: by now, the feds have enough evidence to obtain a judge's order to tap chiesi's phones, and soon, a whole slew of new sources are revealed. >> the net brought in dozens of people who were part of rajaratnam's extended circle of sources. >> narrator: there is bob moffat at ibm, who chiesi is having an

affair with, and kieran taylor, chiesi's source at akamai. and from there it spirals, a dizzying web of tipsters and informants that grows every day, and at the center of at all is raj rajaratnam. >> we had uncovered what is probably the widest and broadest insider-trading operation in history. >> narrator: when "american greed" returns, rajaratnam lands a source at the most powerful bank on the street. to hear more of the fbi wiretaps, go to

americangreed.cnbc.com. wiretaps, go to americangreed.cnbc.com. we'll be right back. [ alarm buzzes ] [ female announcer ] wake up time, but not for your eyes. they're still so tired looking. with olay challenge that, with regenerist anti-aging eye roller.

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markets are in free fall. >> it's 2008. it's the financial crisis. everything is falling apart. it is next to impossible to get an edge in the stock market. >> narrator: and galleon group is not immune. investors are pulling money out, and rajaratnam is feeling the pressure. >> raj lived and died by the performance of the fund every day, so sure, he was stressed, but he was always stressed. i mean, he -- he did not seem like a guy who had a billion or two billion in the bank. i mean, he went to work every day with a need to win just like somebody who, you know, had to make money in order to eat next week, so he was stressed in '08, but he was always stressed. >> narrator: the markets are

getting hammered, but rajaratnam has an edge. at the height of the crisis, prosecutors allege, rajaratnam reels in his biggest source yet -- rajat gupta. gupta is the former head of mckinsey & company, a board member of procter & gamble and goldman sachs, and an investor in galleon. >> rajat gupta was the most illustrious of all of rajaratnam's circle. he was a man who consorted with kings and heads of state and c.e.o.s. he was at the top of that world. >> narrator: on july 29th, rajaratnam takes a call from gupta. as a board member, gupta is privy to the inner dealings of

the most powerful investment bank on the street. now, the government alleges, he is telling rajaratnam all of goldman's secrets. >> this is the most inside that information gets. this was information from a board meeting. >> there were moments when we were, i guess, flabbergasted that the breadth of this web extended to so many high-level executives. >> narrator: six weeks later, lehman brothers has gone bankrupt, and the big banks are all fighting for survival. but goldman sachs has a lifeline. the company is in top-secret negotiations with warren buffett to invest $5 billion.

the news is unexpected and will mean a certain boost to the stock. >> so, the fact that warren buffet is gonna come in with $5 billion, at the depths of the crisis, is huge, and rajaratnam has just golden information that he can trade on. >> narrator: on september 23rd, gupta and the other board members meet via teleconference to approve the deal. the government alleges that seconds after hanging up from the call, gupta dials rajaratnam on his office line -- a line that is not tapped. >> as soon as they got off the phone at 3:58, rajaratnam put in a trade order to buy 350,000 shares of goldman sachs, which was worth $43 million, and that was two minutes before the market closed. that's why they were rushing so much. they had only a few minutes to get this done. >> shares of goldman sachs this morning sharply higher.

>> narrator: when the deal is announced the next day, rajaratnam sells his stock, making a quick $840,000. [ siren wails ] >> narrator: and just like clockwork, one month later, gupta dials rajaratnam again, just 23 seconds after the goldman board call. the news this month is startling -- goldman sachs is going to post its first quarterly loss ever. >> [ laughs ]

>> narrator: rajaratnam dumps his holdings, more than 150,000 shares. by selling before the news goes public, rajaratnam avoids a loss of $3.8 million. >> the whole world was at the edge of collapse -- the financial world -- and they were so focused on continuing to get the edge that it's as if they were trying to keep their poker chips at their side of the table, while playing a game on the deck of the titanic. the whole ship is going down, and they're still keeping their little stacks of chips in play. >> narrator: by now, mckinsey consultant anil kumar has been funneling information to rajaratnam for two years. in august of 2008, he's the source of some major news about amd. a foreign company has just agreed to a multibillion-dollar

cash infusion. >> with chiesi, you knew that there was a little bit of back and forth. there's -- they were competing with each other to some extent, so they're kind of playing this game a little bit of who can get the best information, who can use it.

>> [ laughs ] >> the wiretaps are devastating. they show rajaratnam as a -- someone who is just constantly working people and bringing in as much information as he could and not thinking at all about the law. [ telephone rings ] >> narrator: in the end, agents record more than 2,400 phone conversations. the calls reveal a tangled web of sources, creating the largest case of insider trading ever. >> i think he felt a sense of power, that he had access to -- to information that no one else had and that he was able to profit by it. it's kind of like taking a bite out of the forbidden fruit, except for here he was feasting on the forbidden fruit. >> narrator: when

"american greed" returns, the game is up for rajaratnam. >> how can you deny something that you put on your e-mail or your text? and it piles up and up, and it makes a big pile that will bury you and put you in a federal makes a big pile that will bury you and put you in a federal penitentiary. ♪ ♪

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>> narrator: by 2009, rajaratnam is back on top. he has weathered the depths of the financial crisis, and forbes magazine names him one of the richest people in the world, with a net worth of $1.5 billion. but behind the scenes, federal agents have been investigating rajaratnam for 2 1/2 years. on october 16th, fbi agents descend on rajaratnam's home, cuff him, and charge him with 14 counts of conspiracy and securities fraud.

the arrest sends shock waves through the markets. >> federal officials today announced what they call the biggest hedge-fund insider-trading case in history, and they warn wall street to learn a lesson from it. >> narrator: rajaratnam is released on a $100 million bond. as he awaits trial, the government arrests and prosecutes more than three dozen individuals caught up in the dragnet -- among them, anil kumar and rajiv goel, who become cooperating witnesses and agree to testify against their friend. danielle chiesi, however, refuses to cooperate. >> and in the end, she had a code of honor, which was that she didn't turn anyone else in. there were others who were perfectly willing to turn on their former colleagues once they were in trouble. >> narrator: chiesi pleads guilty, and on july 20, 2011, she is sentenced to 2 1/2 years in prison. >> absolutely.

i anticipate to survive. by surviving, breathing. >> her mood was bizarre, and she seemed to revel in the attention. she was posing for the camera. >> and i told the fbi, if they're ever gonna knock on my door again, do it in the afternoon. [ laughter ] >> narrator: despite the mountain of evidence against him, rajaratnam wants his day in court. the trial begins on march 8th in lower manhattan. the cornerstone of the government's case is the wiretap evidence. prosecutors play more than 40 tapes -- rajaratnam's own voice echoing through the courtroom. >> everybody was rapt attention when those tapes were played. it really brought you inside in a way that we'd never been

brought inside before. >> narrator: the government's key witness is anil kumar, who tells the jury how rajaratnam paid him more than $2 million in exchange for information. >> rajaratnam was looking at kumar with what i thought was undisguised contempt. and this was a rare tell from rajaratnam, who was implacable throughout the trial, gave away nothing, and never spoke. but when kumar -- when his old friend kumar was up there, i-i felt that he hated him. >> narrator: the defense argues that it wasn't insider information. instead, it was painstaking, diligent research that drove rajaratnam's investment decisions. >> the bottom line is even the world's greatest attorney can't save you if you're caught red-handed in e-mails, in text messages, on audio tape with phone calls, phone records. when the government brings in evidence by the truckload,

they're gonna bury you under that evidence. >> narrator: the jury deliberates for 12 days and then returns a verdict -- guilty on all counts. on october 13, 2011, rajaratnam is sentenced to 11 years in prison and ordered to forfeit $63.8 million. it's the longest sentence for an insider-trading case ever. but the worst isn't over yet for rajaratnam. a judge orders rajaratnam to pay $92.8 million to settle the civil case. >> the message to wall street is very loud. it's very clear -- "be afraid. be very afraid." >> narrator: and for months, it appeared that rajat gupta, the most prominent member of rajaratnam's circle, might not be charged. but on october 26, 2011, gupta is charged with five counts of fraud and one count of conspiracy to commit fraud. gupta has pleaded not guilty,

and his attorneys say he never engaged in insider trading. he is expected to go to trial in 2012. >> so, mr. gupta is at an enormous disadvantage because one jury of his peers has already decided that this was enough to put his colleague raj behind bars for an extended period of time, so he's in a very, very deep hole. >> narrator: raj rajaratnam once had it all. he was an immigrant who fought his way to the top and became one of the richest men in the world. but his own greed ultimately was his undoing. >> 99% percent of what galleon did was entirely legitimate, driven by very good analysts and very good traders. i don't see why raj did what he did. it just seemed totally unnecessary. >> raj seems to be someone who could have made a fortune -- made many fortunes without breaking the law. he was extremely smart and knowledgeable and hardworking,

but there seemed to be a bigger challenge and a bigger thrill in getting information that other people couldn't get. >> it was about being a multibillionaire, having $7 billion under management. whether that was just pure, unadulterated greed that he was after or whether it was just the conquest, we may never know. but he wanted the money, and he got the money, no matter what but he wanted the money, and he got the money, no matter what shortcuts he took to get it. -- captions by vitac --

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