Saturday, 15 October 2011

Rajaratnam's sentencing: A warning to Wall Street! - Rediff.com Business

Galleon chief Raj Rajaratnam.
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Suman Guha Mozumder in New York


In what was seen as a strong warning message to Wall Street, a United States District Court last week sent former hedge-fund billionaire Raj Rajaratnam, convicted in May this year in Wall Street's biggest insider trading case, to 11 years in prison, the longest so far involving insider trading in the US.

US District Judge Richard Holwell said while ordering the sentence in a downtown Manhattan courthouse that Rajaratnam's crimes and their scope reflect a virus 'in our business culture' that needs to be eradicated.

In addition to his prison term, Rajaratnam was ordered to pay a fine of $10 million, and to forfeit $53.8 million. He was also sentenced to two years of supervised release.

The sentence -- which some legal considered light -- seemed to be the result of the consideration by the court that Rajaratnam, 54, was apparently in poor health and despite being on the wrong side of the law, had contributed over the years to charities and for benevolent activities.

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