NEW YORK – A new insider trading trial starts on Tuesday on Manhattan, this time focused in the younger brother of Raj Rajaratnam. Rengan Rajaratnam faces two counts of securities fraud and one count of conspiracy to commit fraud. The charges involve trades of Clearwire Corp. and Advanced Mirco Devices Inc. . Securities fraud charges carries a 20-year maximum prison sentence, while conspiracy charge carries a 5-year sentence. Rengan worked at his older brother's firm Galleon Group and is accused of trading on insider information after being tipped by his brother. Prosecutors allege Rengan made more than $800,000 from illegal tips. Rengan's defense team was able to have four other counts dropped, after the judge in the case called some charges "inconsistent." The elder Rajaratnam is currently serving 11 years in prison for insider trading.
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