The LTTE, commonly known as the Tamil Tigers, fought a brutal separatist war against the government of Sri Lanka from 1976 until it was defeated last May.
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Rajaratnam, 52, was among six people arrested Friday in what the Federal Bureau of Investigation said is the largest-ever, hedge-fund insider-trading case, the paper noted.
Federal prosecutors in New York charged Rajaratnam with securities fraud and conspiracy to commit securities fraud.
Prosecutors allege Rajaratnam and his ring of alleged co-conspirators earned 20 million dollars in improper gains, the report said.
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Rajaratnam's New York-based Galleon fund firm manages 3.7 billion dollars in investments.
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