September 23, 2019

Billionaire insider trader facing prison

Raj doesn't look very happy with his new friends who keep wanting to hang out with him.

US hedge fund billionaire Raj Rajaratnam has been found guilty of making at least $60 million from insider trading.

The unanimous verdict, which he plans to appeal, ends an eight-week trial in what prosecutors call the largest hedge fund insider trading case in history. The jury deliberated for two weeks before delivering the guilty verdict.

Rajaratnam, 53, the founder of Galleon Group, used a network of highly placed informants in large corporations to give him inside information on profit forecasts and corporate strategy.

Unknown to Rajaranam, most of his conversations with his contacts were being monitored by the FBI.

He has been released on $100m bail with an electronic tag until his sentencing date of 29th July. If the judge decides to throw the book at him, Rajaratnam is facing 15 to 20 years in prison.

Prosecuters had asked for Rajaranam to be remanded in custody because they fear he will try and flee back to his native Sri Lanka. Their application was denied.

Of course Rajaranam is going to appeal the verdict, but if he wants to avoid prison, he might be better off investing his millions in a good submarine, rather than lawyers. It will probably cost about the same.