Rajaratnam, 53, the Sri Lankan-born hedge fund manager who is accused of security fraud and conspiracy, managed the $7 billion Galleon Group hedge fund.
The FBI arrested Rajaratnam on October 15 in New York after a two-year sting operation using phone taps.
A federal grand jury in New York indicted Raj Rajaratnam, 53, and Danielle Chiesi of New Castle Funds in December 2009 for seventeen counts involving conspiracy and securities fraud crimes for their alleged involvement in the largest hedge fund insider trading case in history.
Rajaratnam is alleged of generating 45 million dollars in profits from the inside trading. The illegal trading activities go as far back as 2003 involving multiple schemes to trade stocks in companies including Hilton Hotels, Google, AMD, Akamai, IBM, and Sun Microsystems.
Nineteen others who were involved in the security fraud scheme have pleaded guilty in the Galleon case.
Following jury selection the prosecutors and defense lawyers are to present their opening statements in the trial expected to take about two months.
Rajaratnam, a Sri Lankan Tamil immigrated to the US in 1981. He was an old boy of St. Thomas College in Mount Lavinia. He founded the Galleon hedge fund group in 1997.
His Galleon Fund was one of Sri Lanka's largest foreign investment funds and had large stakes in blue-chip companies. He was the single largest shareholder of conglomerate John Keells Holdings with 52.4 million shares.
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