Galleon Group chief jailed for 11 years over insider trading

17 October 2011

Raj Rajaratnam, co-founder of the Galleon Group hedge fund, has been sentenced to 11 years in jail for his role as the leader of an insider trading ring.

The sentence is the longest prison term in history to be given out in connection to insider trading.

In addition to the jail sentence, Rajaratnam, who is believed to have made more than $50 million from his illegal activity, was given a $10 million fine and ordered to forfeit a further $53.8 million.

Preet Bharara, Manhatten US attorney, said: "Two years ago, Raj Rajaratnam stood at the summit of Wall Street, commanding his own financial empire. Then he was arrested, tried, and convicted by a jury.

“Mr Rajaratnam stood convicted 14 times over of felonies, his empire exposed as a web of fraud and corruption that entangled many.”

The former business man was convicted on 11 May of 14 counts of securities fraud and conspiracy after an eight week trial by jury.

He is thought to have made trades based on insider information from 2003 until March 2009.

By Jim Ottewill

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