Billionaire portfolio manager sued for allegedly funding a terrorist group

A billionaire hedge fund manager charged in a $25 million insider trading case now faces a lawsuit saying he helped finance Sri Lankan militants notorious for suicide bombings.

The federal lawsuit was filed Thursday in Newark, N.J., against Raj Rajaratnam (RAHJ’ rah-juh-RUHT’-nuhm), a portfolio manager for Galleon Group. The hedge fund has about $3.7 billion in assets.

Victims of militant attacks sued Rajaratnam. They claim he and an organization knowingly provided support to the Liberation Tigers of Tamil Elam to advance its terror campaign.

The lawsuit seeks unspecified damages.

Rajaratnam was among six executives and fund managers charged in Manhattan last week with conspiracy. He is free on $100 million bail.