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.
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.
Rajaratnam's New York-based Galleon fund firm manages 3.7 billion dollars in investments.
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