We will prosecute Raju if US laws violated: Vianale

MUMBAI ��� ���Ramalinga Raju would be prosecuted, if at all, in India, but if he violated U.S. laws and there is a jurisdictional nexus to our country, we could prosecute him,��� Kenneth J. Vianale of US-based law firm Vianale & Vianale told ET in an emailed interview.

The firm is one of the two, which has filed a class action lawsuit against Satyam on behalf of purchasers of the American depository shares (ADS) of the company. Excerpts:

ET: Has the lawsuit been initiated against Mr. Ramalinga Raju in his personal capacity or the entire Satyam company (given that Raju is no longer the chairman of Satyam and he has taken the blame on himself for the fraud)?

KV: The lawsuit is against Satyam Computer Services, B. Ramalinga Raju and B.Rama Raju.

ET: What are the claims in the lawsuit? If lawsuit is against the company, will it not affect the chances of Satyam getting acquired soon, indirectly impacting the interests of shareholders?

KV: We sued under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 -- these are anti-fraud provisions of federal securities law.



ET: There is confusion about which country (India and US) would Mr. Raju be prosecuted, if found guilty (Indian authorities are also investigating this case and have been talking about legal action against Mr. Raju, which can also lead a prison sentence.). Please throw some light on this matter.

KV: Raju would probably be prosecuted, if at all, in India. However, if he violated U.S. laws and there's a jurisdictional nexus to our country, we could prosecute him.

ET: Can you draw some parallels to this case?

KV: WorldCom: a big accounting fraud that was exposed by Jeff Skilling, a WorldCom officer, who, like Raju, explained the accounting fraud that's made it seem like the company was doing better than it actually was.