Billionaire denies insider trading charges

One of America’s richest men accused of a massive insider trading case denied cheating and claimed the US government misled a judge to obtain wiretaps.

Sri Lankan-born hedge fund operator Raj Rajaratnam’s lawyers made the arguments in papers filed in federal court in Manhattan yesterday.

The billionaire portfolio manager for the Galleon Group hedge fund is among 20 people charged in a$52m (€34.6m) insider trading case. He is on $100m (€66.6m) bail.

Rajaratnam’s lawyers said he based trades on information that was already public.

They also say the government misled a judge to surreptitiously tape phone conversations by Rajaratnam and others.

Prosecutors declined to comment.