Raj Rajaratnam sentencing is final and the hedge fund billionaire has got 11 years behind bars for insider trading
54 year old Raj Rajaratnam was sentenced 11 years in prison for insider trading. The hedge fund billionaire, convicted in May on 14 counts of conspiracy and securities fraud, was caught at the center of one of the largest insider trading cases in history.
The justice Deprtment stated that the sentence was strict for the crime though it was considerably lesser than what the prosecution had sought. The prosecution had labeled Rajaratnam “a billion-dollar force of deception and corruption on Wall Street.”
Rajaratnam headed Galleon Management and used his position to trade in stocks such as Goldman Sachs, Google, Hilton and Intel. The government estimate of the money involved is around $72 million.
Robert W. Ray, former federal prosecuter said that the long sentence reflects a trend toward tougher treatment of insider-trading convicts, while a decade ago such a crime would not have got more than two years of prison.
During the sentencing, U.S. District Judge Richard J. Holwell said, “Rajaratnam’s crimes reflect a virus in our business culture that needs to be eradicated.”
Preet Bharara, a Manhattan US attorney, added, “It is a sad conclusion to what once seemed to be a glittering story. Privileged professionals do not get a free pass to pursue profit through corrupt means.”
The Justice Department has refused permission to Rajaratnam to stay out of prison during, stating that he might flee and have access to “tens of millions of dollars by the mere touch of a keystroke.”
He has been ordered to forfeit $53.4 million and pay a fine of $10 million.