India-origin billionaire Rajaratnam slapped with $92.8m penalty in insider-trading case

   Nov 9, 10:19 am

New York, Nov 9 (ANI): Billionaire Indian American hedge fund boss Raj Rajaratnam, who was sentenced to over 11 years in prison for insider trading, has been ordered to pay a record financial penalty of 92.8 million dollars.

According to the New York Times, combined with the fines and forfeitures ordered last month for Securities and Exchange Commission insider trading, Rajaratnam will be paying a total of 156.6 million dollars.

Legal experts believed that the SEC fine against Rajaratnam is noteworthy because in many cases judges would not impose such substantial civil penalties against a defendant who has already been sentenced and ordered to pay stiff criminal fines.

Rajaratnam's lawyers, however, argued that given the financial penalties imposed in the criminal case, a 10 million dollar fine and 53.8 million dollars in forfeited profits, additional civil penalties were unwarranted.

But Judge Jed S. Rakoff, the presiding judge in the SEC's case against Rajaratnam, rejected that notion.

"This misapprehends both the nature of this parallel proceeding and the purposes of civil penalties," the paper quoted the Judge, as saying.

"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," he added.

According to the paper, the judge arrived at the 92.8 million dollars figure by imposing the maximum penalty under the law of three times Rajaratnam's illegal gains at his hedge fund, the Galleon Group.

"This case cries out for the kind of civil penalty that will deprive this defendant of a material part of his fortune," he said. (ANI)

Centre assures to compensate states for revenue loss in GST Dec 19, 6:19 pm
New Delhi, Dec. 19 (ANI): Union Finance Minister Arun Jaitley on Friday said the Centre has given assurance to the states that they would be compensated for any revenue loss post the implementation of the Goods and Services Tax (GST).
Full Story
Uber competitor Easy Taxi aborts India launch plan Dec 19, 3:20 pm
Washington, Dec 19 (ANI): Rocket Internet's Easy Taxi has cancelled its plans of debuting in India, and announced that it is cutting back on businesses in Indonesia and Hong Kong.
Full Story
Manipur's potential in horticulture showcased at Orange Festival in Tamenlong District Dec 19, 2:52 pm
Tamenlong District (Manipur), Dec.19 (ANI): The Government of Manipur is taking every step possible to highlight the potential of horticulture in the state.
Full Story
Silk reeling center in West Tripura providing jobs to rural women Dec 19, 2:31 pm
Badharghat (West Tripura), Dec.19 (ANI): A silk reeling center in Badharghat in West Tripura is providing jobs to rural women.
Full Story
Comments

LATEST STORIES
TOP VIDEO STORIES
PHOTO GALLERY