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)

Wave Infratech awarded naming, marketing rights for two DMRC stations in Noida Apr 1, 6:03 pm
Noida, Apr.1 (ANI): Real estate and entertainment major Wave Infratech has been awarded the naming rights for two popular Delhi Metro stations at Noida Sector 18 and Noida City Centre respectively.
Full Story
French court says UberPop can continue to operate 'for now' Apr 1, 4:15 pm
Washington, April 1 (ANI): Refusing to ban Uber's low-cost service UberPop, an appeals court in Paris has said that the firm could continue to operate it until a constitutional court ruled on a new law governing chauffeur licenses.
Full Story
46 countries apply to become founding members of AsianInfrastructure Bank Apr 1, 3:00 pm
Beijing, April 1 (ANI): Forty-six nations across the globe have applied to become founding members of the AsianInfrastructure Investment Bank, proposed by China, when the deadline closed on Tuesday, a report said.
Full Story
Petrol prices cut by 49 paise per litre, diesel by Rs 1.21 a litre Apr 1, 12:25 pm
New Delhi, Apr. 1 (ANI): Petrol price has been cut by 49 paise a litre in the national capital (including State levies) while diesel prises have been slashed by one rupees 21 paise per litre.
Full Story
Comments

LATEST STORIES
TOP VIDEO STORIES
PHOTO GALLERY