Another bad news for Raj

  • Facebook
  • Twitter
  • Delicious
  • LinkedIn
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS

After receiving the longest-ever prison sentence for insider-trading, the Galleon Group founder, Raj Rajaratnam now faces the largest-ever fine in an insider-trading case.

U.S. District Judge Jed Rakoff ordered Mr. Rajaratnam to pay $92.8 million in the Securities and Exchange Commission civil case against him.   The $92.8 million fine is the maximum allowed under law, equivalent to three times Rajaratnam’s illicit gains.

The judge rejected the defense’s argument that a decade in prison and the $63.8 million in fines and restitution their client has already paid in the criminal case were sufficient.

Justice Rakoff wrote that “this misapprehends both the nature of this parallel proceeding and the purposes of civil penalties.”     He further stated that “SEC civil penalties, most especially in a case involving such lucrative misconduct as insider trading, are designed, most importantly, to make such unlawful trading a money-losing proposition not just for this defendant, but for all who would consider it.”

However, it is unclear how much money Mr. Rajaratnam, an estimated fortune of $1.5 billion, still has.    Mr. Rajaratnam was taken off the Forbes magazine billionaires list after his October 2009 arrest.     A pre-sentence report does list Mr. Rajaratnam’s current net worth, which “considerably exceeds” the $63.8 million Mr.  Rajaratnam was ordered to pay after his conviction in May.

Anna Timone (195 Posts)


Comments

  1. He probably deserve this for funding terrorism…. However, he’s being sentenced for insider trading.. not for funding terrorism…

  2. Amandha I was just about to comment about the same thing. :-)

Speak Your Mind

*