Raj Rajaratnam, the Galleon Group hedge fund co-founder convicted of directing the biggest insider trading scheme in a generation, said the use of wiretapped calls by the U.S. raises “substantial” issues of law that should allow him to remain free during his appeal. Lawyers for Rajaratnam, 54, who is scheduled to report to prison on Dec. 5, said the evidence they submitted in court papers “establishes the substantiality of Mr. Rajaratnam’s appeal.” Patricia Millett, a lawyer for Rajaratnam, yesterday filed a copy of the March 7, 2008, wiretap application request by FBI special agent B.J. Kang to intercept phones used by Rajaratnam as part of the insider-trading investigation. Millett said in the filing that the court may like to see the document “in anticipation” of a hearing set for Nov. 30. Rajaratnam’s lawyers unsuccessfully argued against the use of the telephone intercept evidence at his trial. He was convicted by a jury in May and sentenced to 11 years in prison.  [Bloomberg 11/29/11]