Rajaratnam could set record for insider trading sentence
Raj Rajaratnam could get the longest insider trading sentence in
history - 24 years in prison - if federal prosecutors have their
druthers.
Observers say Rajaratnam’s punishment will serve as a litmus test for
whether the crime of insider trading warrants a lengthy stay in Club
Fed.
This past May, a jury convicted Rajaratnam, the former head of the
hedge fund Galleon Group, of 14 counts of conspiracy and securities
fraud. Prosecutors and wiretapped phone calls painted Rajaratnam as the
center of a global network of insiders, who passed information to him.
The illegal stock trades allegedly yielded him about $64 million.
Since the 1980s, prison terms for white-collar criminals have
increased to keep up with the value of their illegal trades and
securities fraud.
Whether Raj Rajaratnam’s stay will exceed the average federal prison
term for murder will likely be decided next week.
www.insidermonkey.com
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