After being arrested two years ago for insider trading charges, Hedge Fund manager and Galleon Group LLC co-founder Raj Rajaratnam was sentenced today to eleven years in prison and charged a $10 million fine as punishment for his ill-gotten gains of over $70 million.
The prosecution was seeking a twenty-four year sentence but the judge lessened the term to eleven years but some say the sentence does not serve the crime. However it does send a message of “deterrence” to whoever tries this type of conduct, will get punished for it.
Rajaratnam, 54, did not utter a word when he was given his sentence. He didn’t even speak publicly before his trial, nor did he testify during his trial.
The former hedge fund manager masterminded one of the biggest insider trading scandals in Wall Street by providing corporate insiders with corporate earnings or details of mergers that had not yet been announced.
A total of twenty-six people were involved in the fraud, twenty-five of which pleaded guilty, with one still at large and has not been arrested yet.
The case has been a major victory for the U.S. Attorney’s Office in Manhattan. Manhattan U.S. Attorney Preet Bharara said on Thursday that Rajaratnam’s downfall should send warnings to Wall Street.
“It is a sad conclusion to what once seemed to be a glittering story,” he said in a statement. “We can only hope that this case will be the wake-up call we said it should be when Mr. Rajaratnam was arrested.”