Ep 56. The Insider: Raj Rajaratnam

In season 6, episode 56 of American Greed, titled "The Insider: Raj Rajaratnam," viewers are taken deep inside the world of Wall Street insider trading. The episode focuses on Raj Rajaratnam, the founder and CEO of Galleon Group, a hedge fund firm that, at its peak, managed over $7 billion in assets. Rajaratnam is known for his prowess in the financial industry, having consistently generated high returns for his investors. However, as viewers will soon learn, his success came at a great cost.

The episode begins by introducing viewers to Rajaratnam's rise to power. From humble beginnings in Sri Lanka, Rajaratnam worked his way up the ranks of Wall Street, first as a technology analyst and later as a fund manager. He gained a reputation as a savvy investor who was always one step ahead of the game. His firm, Galleon Group, was seen as one of the most successful in the industry.

However, as the episode progresses, viewers begin to see a darker side to Rajaratnam's success. It is revealed that, for years, Rajaratnam engaged in insider trading – the illegal practice of trading stocks based on privileged information not available to the public. He used his extensive network of contacts within the financial industry to gain access to information that he could then use to make profitable trades.

The episode delves deep into the mechanics of insider trading, explaining how it works and why it is illegal. Viewers see how Rajaratnam used secret codes and encrypted messages to communicate with his co-conspirators and avoid detection by authorities. They also learn about the significant risks associated with insider trading, including the potential for prison time and enormous fines.

Throughout the episode, viewers are introduced to a range of characters who were involved in Rajaratnam's web of insider trading. These include Rajiv Goel, a former Intel executive who provided valuable information to Rajaratnam, and Anil Kumar, a McKinsey & Company partner who also passed on sensitive information. Viewers see how these individuals were lured into Rajaratnam's scheme, often with promises of lucrative payouts and insider access.

As the episode progresses, viewers witness the downfall of Rajaratnam and his associates. They see how the FBI, aided by wiretaps and other investigative techniques, built a case against Rajaratnam and ultimately arrested him in October 2009. They also learn about the extensive legal proceedings that followed, including Rajaratnam's trial and subsequent conviction in May 2011.

Finally, viewers see the aftermath of Rajaratnam's downfall. They witness the impact that his actions had on the financial industry, including the increased scrutiny and regulation that followed. They also hear from legal experts and insiders who weigh in on the broader implications of insider trading and the importance of maintaining a fair and transparent financial system.

Overall, season 6, episode 56 of American Greed offers a fascinating look into the world of Wall Street insider trading. Viewers are taken inside one of the most significant insider trading cases in history, seeing how one man's greed and ambition led to his downfall. Along the way, they gain valuable insights into the risks and consequences of this illegal practice, and the importance of maintaining financial integrity in a complex and ever-changing world.