NEW YORK, Oct. 20 (UPI) -- Galleon Group Tuesday reassured clients the New York firm was solvent despite its founder's arrest on insider trading charges.
Raj Rajaratnam and five others were arrested for making illegal trades on companies like Google, Akamai and Hilton over nearly three years, The New York Times reported.
The firm, which manages $3.7 billion in assets, was "highly liquid," a company spokesman said, although a lawyer representing Galleon investors said it was likely there would be a quick rush of clients withdrawing their money from the firm.
"Once a few big investors head for the exits, it doesn't take long for the flood gates to open," the attorney said.
Some clients found restrictions on withdrawals, including providing 45 days of notice. Nevertheless, the Times reported investors have requested about $1 billion of withdrawals since Friday's arrests.
Galleon said Rajaratnam was not barred from leading the company and would continue to work while mounting a defense.
