Galleon staff batten down hatches

NEW YORK: Galleon Group's analysts, portfolio managers and traders in New York are seeking legal advice and updating their resumes after the arrest of Raj Rajaratnam, the hedge-fund firm's founder, led to a flood of redemption requests, people familiar with the matter said.

Rajaratnam, arrested on Oct 16 for alleged insider trading and released on $100 million bail, spoke to his employees on Monday, telling them in a 10-minute speech that he will fight the charges, according to two people familiar with his speech who asked that their names not be used because the comments were private. Rajaratnam also wrote to investors and employees.

"I am entirely innocent and will vigorously defend myself and our firm," Rajaratnam, 52, said in his letter. "As I move forward on my defense, I want to assure you that our commitment to our investors and employees will remain unwavering."