By Walter Jayawardhana

The Wall Street Journal reported the Sri Lanka born hedge-fund billionaire Raj Rajaratnam who has been arrested and released on Dollars 100 million personal recognizance bond has also been investigated for contributing money for the Tamil Tiger terrorist group.

The newspaper said Federal agents had uncovered documents showing that the founder of the Galleon Group was among several other wealthy Sri Lankans who had given money to a Maryland based charity that funnelled money to the Tamil terrorist group, Liberation Tigers of Tamil Eelam.

Rajaratnam (52) and his co-conspirators are alleged to have made 20 million Dollars by this insider trading scam.

Jim Walden , Attorney at Law for Rajaratnam has denied all charges and has said his client has only donated for Tsunami related charities but was not involved with the Liberation Tigers of Tamil Eelam (LTTE) who are also known as Tamil Tigers.

As a result of a separate investigation by the FBI in Brooklyn, New York eight people have pleaded guilty to attempting to provide material support to the LTTE, the Wall Street Journal further said.

Documents in a federal criminal complaint filed in New YorkƒÆ’‚¢ƒ¢-¡‚¬ƒ¢-¾‚¢s Eastern District allege money donated to a charity called TRO of Cumberland ,Maryland had been funnelled to buy arms for the LTTE.

The case was brought against Karunakaran Kandasamy , whom the Federal agents named as the LTTE head in the United States.

According to Wall Street Journal In the same case, an FBI agent cites documents uncovered in court-authorized searches as showing donations to TRO USA made by a person identified only as “individual B.”

Rajaratnam is the person identified as “individual B,” said the paper, citing “people familiar with the probe.”