Rajaratnam Rejects Gov't. Bid To Reveal Medical Information

Oct 4 2011 | 3:12am ET

When it comes to the "unique constellation of ailments ravaging his body," Galleon Group founder Raj Rajaratnam wants leniency when he is sentenced next week. But he'd rather keep the details a secret.

Rajaratnam's lawyers yesterday filed a motion opposing a government request to release information about Rajaratnam's health. Prosecutors argued last week that, if Rajaratnam is going to use his medical issues, which have never been publicly disclosed, in an effort to win a more lenient sentence than that suggested by federal sentencing guidelines, then the public has a First Amendment right to know what's wrong with him.

Not so, his lawyers argue.

"The idea that Mr. Rajaratnam's interest in keeping his medical conditions private must yield to the public's prurient interest in such intimate details is absurd," Rajaratnam's legal team wrote. "No defendant should be forced to choose between providing the court with medical information relevant to sentencing and making himself the subject to a salacious and morbid media feeding frenzy."

Rajaratnam was convicted in May of insider-trading. Prosecutors have asked U.S. District Judge Richard Holwell to sentence him to between 19½ and 24½ years in prison, a term that Rajaratnam's lawyers have called "grotesquely severe" and an effective death sentence for the 54-year-old.

Separately, Holwell will hear arguments today about how much Rajaratnam actually made on his illegal trades, a figure that could play a major role in determining how long he spends in jail. Prosecutors say he made $63.8 million, while the defense counters the number was closer to $36.3 million.

What's more, Rajaratnam's lawyers plan to argue today, his own "culpability" is only about $7.5 million—the amount Rajaratnam would have earned in fees on the illegal trading. And even that is too much, they say, since Rajaratnam earned no fees at all during the financial crisis in 2008.


In Depth

JOBS Act Propels Real-Estate Crowdfunding Platform

Oct 21 2014 | 2:57am ET

If D.J. Paul were a real estate development, he would be described as “multi-use...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.