Wednesday, 31 August 2016
Last updated 20 hours ago
Sep 27 2011 | 1:09pm ET
The judge who will sentence Galleon Group founder Raj Rajaratnam next month wants to know exactly how much the convicted insider-trader made on his scheme before he decides his fate.
U.S. District Judge Richard Holwell set a hearing to determine the "loss amount" in the case for Oct. 4. Prosecutors say that Rajaratnam made more than $63 million, a figure that Rajaratnam's defense team calls the result of "errors" and one that "massively overstates the seriousness of the offense."
Prosecutors have asked Holwell to sentence Rajaratnam to a term called for by non-binding federal guidelines, between 19½ year and 24½ years. Rajaratnam's lawyers have asked for a term substantially below the guidelines.
Holwell also appears to be looking at an earlier insider-trading sentencing for direction in the Rajaratnam case. The judge sought—and received from his colleague on the bench, U.S. District Judge Jed Rakoff—permission to review the pre-sentence report for Winifred Jiau, the former expert-network consultant convicted of insider-trading in June in a case separate from the Galleon case.
It is unclear what Holwell hopes to learn from the report. Jiau's proceeds from the sale of confidential information to hedge fund managers and others was about $200,000, according to prosecutors, a fraction of the amount Rajaratnam is said to have made. But it could also be good news for Rajaratnam: Jiau was sentenced to four years in prison, half of the eight-to-10 years that prosecutors sought.
Rajaratnam's lawyers also asked that their client not be sent to prison immediately after sentencing, instead seeking to allow him to remain free on $100 million bail and under house arrest while he appeals his conviction.