Galleon founder pleads not guilty of insider trading

Raj Rajaratnam (centre) is accused of insider trading in 2007

Raj Rajaratnam has pleaded not guilty to charges of securities fraud in what is thought to be the biggest ever insider trading case.

The Galleon hedge fund founder is one of 21 defendants charged with allegedly using their expertise to generate $30 million in illegal profits.

Co-defendant Danielle Chiesi, a former New Castle Funds employee, also pleaded not guilty in a Manhattan court.

Both have been out on bail since their 16 October arrest.

The pair are the only defendants to be formally indicted in the case so far.

Most of the accused had expertise in technology stocks and the allegations include passing inside information on earnings announcements, takeovers and contracts.