Rajaratnam Fined $92.8 Million

Nov 9 2011 | 12:38pm ET

Having already received the longest-ever prison sentence for insider-trading, Raj Rajaratnam can now boast the largest-ever fine in an insider-trading case.

The Galleon Group founder earned that highly-unwelcome honor yesterday, when U.S. District Judge Jed Rakoff ordered him to pay $92.8 million in the Securities and Exchange Commission civil case against him. 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.

"This misapprehends both the nature of this parallel proceeding and the purposes of civil penalties," Rakoff wrote. "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."

The $92.8 million fine is the maximum allowed under law, equivalent to three times Rajaratnam's illicit gains.

It is unclear how much money Rajaratnam, who once boasted an estimated fortune of $1.5 billion, still has. Rajaratnam fell off the Forbes magazine billionaires list after his October 2009 arrest. A pre-sentence report, which is not public, does list Rajaratnam's current net worth, which "considerably exceeds" the $63.8 million Rajaratnam was ordered to pay after his conviction in May.


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

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

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

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.