"I'm a rogue," Raj Rajaratnam, founder of the Galleon Group, memorably declared. He may have come to regret those words, caught on federal wiretaps and made public during Rajaratnam's recent insider trading trial, leading to his conviction.

While Rajaratnam may have been honest with himself about his lack of ethics, relatively few investors were aware of it. Instead, they were dazzled by his hedge fund's success in gaining an information edge, and turning that edge into megaprofits for both Galleon's leaders and its investors.

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