Rajaratnam Sentenced to 11 Years in Prison Amid Insider Trading Crackdown
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The courts and media are making an example out of Raj Rajaratnam as a district judge sentenced him to an 11 year term in prison right next to everyone’s favorite schemer Bernie Madoff.
The 11-year sentence is the largest ever given to someone convicted of insider trading. Along with the sentence, Mr. Rajaratnam will be forced to pay a $10 million fine and forfeit $53.8 million in cash.
Prosecutors origianlly looked for a 25-year, 5-month sentence for the 54-year-old Rajaratnam; his lawyer, however, asked for a lesser sentence noting health problems.
This scandal is being considered one of the biggest in history as prosecutors claim Rajaratnam either saved or earned roughly $72 million through illegal insider knowledge. Rajaratnam’s lawyers claim $7.46 million is more of a reasonable number, saying the U.S. government is counting gains made by Galleon, Rajaratnam’s former hedge fund.
Rajaratnam is scheduled to begin his sentence on November 28th and has been released on bail until then.
Rajaratnam was not all about the money, his lawyers argued, pointing to numerous donations made by the money manager to the Harlem Children's Zone, a nonprofit organization.
The truth is, while Rajaratnam was involved in insider trading, he was no guiltier than anyone else who has been convicted of the same crime. The reasoning behind his extended sentence is likely due to the crackdown by the U.S. government. Earlier in the year, the U.S. government announced plans to stop insider trading and noted extreme consequences for anyone convicted.
The media has been blasting Rajaratnam’s face all over the news like his case hasn’t been going since May.
The 11-year sentence is the largest ever given to someone convicted of insider trading. Along with the sentence, Mr. Rajaratnam will be forced to pay a $10 million fine and forfeit $53.8 million in cash.
Prosecutors origianlly looked for a 25-year, 5-month sentence for the 54-year-old Rajaratnam; his lawyer, however, asked for a lesser sentence noting health problems.
This scandal is being considered one of the biggest in history as prosecutors claim Rajaratnam either saved or earned roughly $72 million through illegal insider knowledge. Rajaratnam’s lawyers claim $7.46 million is more of a reasonable number, saying the U.S. government is counting gains made by Galleon, Rajaratnam’s former hedge fund.
Rajaratnam is scheduled to begin his sentence on November 28th and has been released on bail until then.
Rajaratnam was not all about the money, his lawyers argued, pointing to numerous donations made by the money manager to the Harlem Children's Zone, a nonprofit organization.
The truth is, while Rajaratnam was involved in insider trading, he was no guiltier than anyone else who has been convicted of the same crime. The reasoning behind his extended sentence is likely due to the crackdown by the U.S. government. Earlier in the year, the U.S. government announced plans to stop insider trading and noted extreme consequences for anyone convicted.
The media has been blasting Rajaratnam’s face all over the news like his case hasn’t been going since May.
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