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Business

Banker linked to Raj

By
Post Staff Report
Published Jan. 22, 2011, 5:00 a.m. ET

An unidentified Morgan Stanley banker provided information on Advanced Micro Devices Inc.’s purchase of ATI Technologies Inc., US prosecutors in the Raj Rajaratnam insider-trading case said.

In a letter to lawyers for Rajaratnam, the Galleon Group LLC co-founder who goes on trial next month, US prosecutors said the Morgan Stanley banker in May 2006 gave the information to an unnamed person who passed the tip on to Rajaratnam.

A public copy of the letter contains redactions obscuring the identities of the Morgan Stanley banker and the person who allegedly passed Rajaratnam the tip.

The US Attorney’s Office in Manhattan said prosecutors have filed a superseding indictment against Rajaratnam.

Morgan Stanley said it had placed the unidentified banker tied to the Galleon Group LLC hedge fund insider-trading case on leave.

“We have placed the banker on leave and are fully cooperating with the government’s investigation,” said Pen Pendleton, a spokesman for Morgan Stanley. He declined to identify the employee.