US hedge fund founder convicted of insider trading

On May 11, 2011, a jury in the US District Court for the Southern District of New York convicted Galleon Group hedge fund founder Raj Rajaratnam on 14 counts of insider trading. Rajaratnam was convicted of providing multiple hedge funds with material nonpublic information about several corporations that generated $25 million in illicit gain. Though the prosecution requested a stiff prison sentence of nearly 25 years, Judge Richard Holwell sentenced Rajaratnam to 11 years in prison, ordered him to pay $10 million in fines and forfeit an additional $53.8 million. Rajaratnam began serving his prison sentence on December 6, 2011.

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