It’s not as though Galleon Group founder Raj Rajaratnam doesn’t have enough problems these days, what with being arrested and charged with a $20 million insider trading scheme and having to wind down his fund.

Now, Rajaratnam and his father, J.M. Rajaratnam, are being sued by victims and survivors of attacks mounted by the Tamil Tigers, a Sri Lankan group that was designated as a terrorist organization by the U.S. Treasury in 1997.

Rajaratnam is a native of Sri Lanka. His family foundation gave more than $5 million to the Tamil Rehabilitation Organization (TRO), the plaintiffs in the lawsuit alleged. The U.S. Treasury claimed in 2007 that the TRO was a front for the Tamil Tigers, according to a statement put out by Michael Eisner, an attorney for the plaintiffs.

According to newspaper reports, Rajaratnam’s attorney has denied the accusations in the complaint. His attorney did not immediately return a phone call from HedgeFund.net seeking further comment.

Rajaratnam was arrested last week, along with five others, and charged with insider trading in what prosecutors are calling the largest such case involving a hedge fund. He is out on $100 million bail.