A disturbing news for the Democratic Party, and the Republican Party to a certain extent, has appeared on Yahoo! Finance. Raj Rajaratnam, a Wall Street billionaire, originally from Sri Lanka and with dual citizenship, whose net worth is valued at $1.3 billion, was arrested, together with six hedge funds managers for allegedly conducting insider trading schemes which generated illegal profits of $25 billion.
The news concerns not just finance but politics as well. According to the Federal Election Commission (FEC), Raj Rajaratnam contributed to political campaigns for federal office, and most of these contributions went to the Democratic Party and the Democratic candidates. Here’s what the political contributions data show regarding not just Raj Rajaratnam but also everybody else involved, thanks to Associated Press writers, and some analysis from my part:
Raj Rajaratnam: $4,200 to Hillary Clinton’s Senatorial Democratic primary campaign and $26,700 to the Senatorial Campaign Committee of the party, $4,600 to Hillary Clinton’s presidential campaign during the Democratic primaries, $2,000 to Rohit Khanna for his Congressional Democratic primary campaign for the 12th District in New York (Mr. Khanna was appointed by President Obama to serve as Deputy Assistant Secretary for Domestic Operations), $2,000 to Maria Cantwell for the general election for Senator in Washington, $2,000 to Charles Schumer’s Senatorial campaign ($1,000 for the primary and other $1,000 for the general election), $5,000 to a Volunteer PAC. $2,300 were were disbursed from Hillary Clinton’s presidential campaign during the general election. $30,800 to the Obama Victory Fund known as Barack Obama’s Principal Campaign Committee, another $4,600 ($2,300+2,300 at the same day, one for the primaries and one for the general elections, as filed with the FEC) to Barack Obama, $12,100 ($2,100+$10,000) to New Jersey Democratic Victory which is a fundraising project for Senator Robert Menendez (D – New Jersey), other $2,100 given personally to Senator Menendez (that is, not through the fundraiser) on the same day when the $12,100 were donated to the project, additional $10,000 that went through the New Jersey Democratic State Committee (again on the same day), and $26,200 to the Democratic National Committee (this time from a different address in New York City, as you can see). Raj Rajaratnam is also alleged to have sponsored the Tamil Tigers, a terrorist group in Sri Lanka. These numbers plus the allegation and other related facts are a big red light for the Obama Administration and the Democratic Party. In times of a crisis in the right, the GOP will be sure to use them against the current majority at the federal level, and why not at the state level. The people in New Jersey are getting mad at the Democratic Party there, especially when it comes to their property taxes and the corruption scandals in the Garden State, and it won’t be surprising if the state experiences a reallignment after less than three weeks.
Rajiv Goel had personally no campaign contributions whatsoever according to the FEC. His name doesn’t appear on their data at all.
Anil Kumar: the media say that he is a director at McKinsey & Co. Inc. but FEC data show several people with the name Anil Kumar and none of them holds such a position. Click here to see it for yourself.
Robert W. Moffat, Jr. has not personally made any contributions. There are several people named Robert Moffat but none of them appears to be the resident of Ridgefield, Connecticut, nor is it there a person with this name who works for IBM.
- Danielle Chiesi: $5,000 to the National Republican Congressional Committee plus $200 twice beforehand to the same grantee. This may somewhat make some Republicans more unwilling to make a big deal out of the inside trading scandal but not as much as required. Twelve years are a long period of time, not to mention the comparatively insignificant amount of money given to the GOP. Of course, if we take inflation into consideration, the worth of $5,000 back then is more than it is today but this message particularly is too abstract to be given to the people. Don’t get me wrong, I think that people are smart enough for the most part but this exact issue is very much hidden into the background, that is, the whole picture.
- Mark Kurland: $500 to Bear Stearns PAC 12 years ago. Bear Stearns PAC has given money both to Republicans and Democrats for the last two years.
How this will affect the American left is still too early to predict, and I am sure that there are a lot of details that we as outsiders are not aware of, which are very likely to change the analyses to a whole lot different direction. Other scenario can be that everybody will keep quiet on it which, to me, is unlikely but is hypothetically possible. What is for sure though is that the Democratic Party must pay attention to the entire situation and prepare a good and reasonable answer which exists for sure, at least because there are too many contributors to political parties and candidates for office in order to keep track on everybody’s reputation, not to mention that contributors would be more willing to give money to candidates for office that are more likely to win an election. Besides, this is allegedly an inside trading scheme which can have tons of interpretations. As one who considers himself a Democrat, I hope and believe that there is absolutely no place for fears here.