Lawsuit alleges convicted hedge-fund founder tried to buy influence in federal prison

A former driver for an imprisoned hedge-fund founder says he was asked to help funnel money from his former boss to other inmates at a federal prison in Massachusetts.

The Greenwich Time reports ( ) the allegations are contained in a lawsuit filed by the driver, Peter Malaszuk, against Raj Rajaratnam (rahj rah-juh-RUHT'-nuhm) last week in U.S. District Court.

Rajaratnam, founder of the Galleon Group, is serving an 11-year sentence for insider trading at a minimum-security facility in Ayer, Massachusetts.

Malaszuk alleges Rajaratnam gave him names and contact information for the family members of inmates who were to receive money. He says the cash was meant to secure special treatment in prison for Rajaratnam.

Terence Lynam, Rajaratnam's attorney, says the allegations are false and part of an effort to extort money.


Information from: Greenwich Time,