Ex-Galleon Trader, 'Key' Witness Against Rajaratnam, Gets Probation

Jun 27 2012 | 11:59am ET

The value of cooperating with the government was demonstrated again yesterday, when a federal judge decided to spare a Galleon Group insider-trader jailtime.

Adam Smith testified at Galleon chief Raj Rajaratnam's trial and offered "substantial" assistance to investigators. He pleaded guilty to insider-trading charges last year.

But while Rajaratnam was sentenced to 11 years in prison after his Smith-assisted conviction, and other non-cooperators have received between six months and 10 years in the clink, Smith was sentenced to just two years' probation.

U.S. District Judge Jed Rakoff also ordered him to forfeit $105,300 and imposed a $15,000 fine.

Smith said that he was "deeply sorry for the mistakes I've made and I'm incredibly humbled and ashamed." He added, "I apologize to those who I have caused pain and harm, to my wife, my friends and my family. I love my wife, my sons, my family and my friends."

Faced with such a statement, the sharp-tongued Rakoff couldn't help himself. "I hope this won't be taken too cynically," the judge said, "but why is it that defendants always remember how much they love their families after they've committed the crimes that place that relationship in jeopardy?"


Lifestyle

Survey: Wall Street Banks Still Top Silicon Valley, Hedge Funds for Freshly-Minted MBAs

Jun 21 2016 | 9:01pm ET

Contrary to concerns that Wall Street isn't as appealing to new graduates as it...

Guest Contributor

The Future of the Blockchain in Financial Services Communications

Jun 17 2016 | 1:05pm ET

Over the past year, a large portion of the financial services industry has awakened...