Rajaratnam Seeks To Stay Out Of Prison

Nov 30 2011 | 12:21pm ET

A federal appeals court declined to rule immediately on Galleon Group founder Raj Rajaratnam's last-minute bid to stay out of jail.

The U.S. Court of Appeals in Manhattan heard arguments this morning from the convicted insider-trader's lawyers that he should be permitted to remain free while they appeal his conviction and 11-year sentence. Rajaratnam's lawyers have argued that there are major questions about the legality of the wiretaps at the heart of the case against their client, and that if those wiretaps are excluded on appeal, a new trial would have to be ordered.

Prosecutors rejected those arguments, and added that Rajaratnam, who remains under house arrest on $100 million bail, is a flight risk with significant assets—despite more than $150 million in fines and restitution—and ties to his native Sri Lanka.

"He's got nothing to go to in Sri Lanka," Patricia Millett, one of Rajaratnam's lawyers, told the court, noting that he has serious health problems that might not be addressable in the impoverished, war-torn country.

If the court doesn't side with Rajaratnam, he'll have to report to prison on Monday in Massachusetts.

Separately, another man convicted in the Galleon case, Emanuel Goffer, won a month-long reprieve from his upcoming three-year sentence. Goffer, the brother of Zvi Goffer, convicted of leading one of two interlocking insider-trading rings in the case, will now report to prison on Jan. 9. Goffer was convicted alongside his brother, a former Galleon trader, and one other man in June.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

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.