Rajaratnam Gets 11 Years; Insider Trading Term Could Have Been 24+


Raj Rajaratnam was ordered to prison for 11 years yesterday for multiple insider-trading conspiracies and trades he directed as head of one of the world’s largest hedge funds, reports the New York Law Journal. The pivotal figure in the most wide-ranging insider-trading prosecution in history could have done worse, federal judge Richard Holwell gave the government virtually everything it wanted by calculating a sentencing range of between 19 1/2 and 24 1/2 years in prison but imposed a sentence that fell well below that range.

Howell said he went below the range partly because of Rajaratnam’s good works throughout the world, from helping Sri Lankan tsunami victims to giving aid to earthquake victims and aiding poor children and cancer sufferers in New York. He also cited poor health of the Galleon Group hedge fund founder, who suffers from advanced diabetes that is leading to “imminent kidney failure and a host of other problems.” Prosecutor Reed Brodsky urged the judge to impose the toughest sentence possible, calling Rajaratnam “arguably the most egregious insider trader to face sentencing in a federal courthouse in the United States.”

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