School ties central to Rajaratnam insider-trading case

Was it friendship or was it collusion?

Several individuals charged in the insider-trading case along with Raj Rajaratnam have connections that go back to college days.

As the San Jose Mercury News notes, Rajaratnam met two of his co-defendants as a student at Wharton School.

Intel finance exec Rajiv Goel, like Rajaratnam a member of Wharton class of 1983, is on leave of absence because of charges filed against him. Goel is accused of providing inside information to Rajaratnam about investments Intel (INTC) made in Clearwire (CLWR). Rajaratnam then allegedly traded on the information, clearing a profit of $579,000.

Another classmate, Anil Kumar, is accused of providing inside information to Rajaratnam as an executive at McKinsey. The firm says Kumar no longer works there. Kumar allegedly leaked info about Advanced Micro Devices, Inc (AMD).

The three men have denied the charges. Rajaratnam has acknowledged his friendships with old Wharton classmates and other defendants he has known since his days as an analyst, and later president, of Needham investment bank.

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