Billionaire Raj Rajaratnam, founder of a hedge fund Galleon Group has been arrested in connection with an insider trading case.

Raj Rajaratnam is accused of conspiring with others to use insider information to trade securities in a number of publicly traded companies including Google.

Raj Rajaratnam had a ticket to fly from Kennedy International Airport to London at the time of his arrest.

Besides Raj Rajaratnam, chief of IBM's systems & technology, Robert Moffat, and executives of McKinsey & Co. were also arrested in the $20 million hedge fund insider-trading case.

Speaking on the topic, the US attorney for the Southern District of New York, Preet Bharara, said, “This case should serve as a wake-up call for Wall Street.”

The arrested people used to receive inside information from insiders and provided it to one another for the purpose of trading on the basis of information.