Raj Rajaratnam is scheduled to be sentenced next week. Rajaratnam, the founder of Galleon Group, was convicted of insider trading by a federal court last year. The Federal District Court opened a hearing for sentencing this week. The prosecutor, Assistant US Attorney Andrew Michelson, is advocating that Rajaratnam, who he calls a “serial inside trader,” receive 19½ to 24½ years in prison for making over $70 million through insider trading. The Defense, is arguing that Rajaratnam made as little as $7 million through his trading.
It Was Not an Isolated Case
Reed Brodsky, who also works as a prosecutor on the case, explained that Rajaratnam could have been charged with as many as 1000 counts of insider trading, explaining that he engaged in the illegal practice so frequently.
Rajaratnam was Charged with Three Crimes
The particular instances under review currently involves the $50 million in profits that Rajaratnam was to have made within 2 days of various public announcements after receiving news that had not been made public. He is also said to have made $30 million on mergers and acquisitions by trading ahead of public announcements and another $30 million by trading ahead of earnings announcements.