Galleon's Rajaratnam strikes back, calls SEC tactics unconstitutional

Billionaire hedge fund manager Raj Rajaratnam had vowed to fight the insider trading charges against him with the same vigor he used to amass his fortune. And now his army of seasoned lawyers is swinging back hard against allegations that the founder of the Galleon Group engaged in insider trading in stocks ranging from Google (GOOG) to Hilton (HLNQ).

On Tuesday, Rajaratnam's legal team responded to the SEC's allegations by attempting to systematically dismantle the case made against their client. Not only were the methods used to snare Rajaratnam unconstitutional, the response contends, but the information allegedly given to Rajaratnam was already widely known, and it may be difficult to prove he traded on it rather than on his broader analysis of the stocks.