Conviction of Galleon's Raj Rajaratnam upheld

A federal appeals court on Monday upheld the insider conviction of Galleon Group hedge fund founder Raj Rajaratnam.

The 2nd U.S. Circuit Court of Appeals in New York rejected Rajaratnam's arguments that wiretap evidence in his case should have been suppressed, and that jury instructions on the use of inside information were inadequate.

Rajaratnam is the highest-ranking hedge fund executive convicted in a wide-ranging federal probe into insider trading that was unveiled in October 2009.