Tag: Raj Rajaratnam

Raj Rajaratnam has been designated to FMC Devens, in Massachusetts.

Rajaratnam' medical issues were a big focus at sentencing. It's likely he will need a kidney transplant and dialysis during his 11 years in prison. FMC Devens contracts with the University of Massachusetts for kidney transplant services.

Recently, FMC Devens published a contract solicitation for mortuary services for its inmates. It estimates a maximum of 25 inmate deaths per year. Currently, there are 1,096 inmates at FMC Devens. [More...]

Former Goldman Sachs director Rajat Gupta will surrender to the FBI tomorrow to face criminal charges related to Raj Rajaratnam. The charges are likely to pertain to allegations he gave Raj confidential information about Goldman Sachs, who then traded on the information:

Authorities said Mr. Gupta gave Mr. Rajaratnam advanced word of Warren E. Buffett’s $5 billion investment in Goldman Sachs during the darkest days of the financial crisis in addition to other sensitive information affecting the company’s share price.

Gary Naftalis, Gupta's lawyer, says:

Gupta's lawyer Gary P. Naftalis said Tuesday night that his client and Rajaratnam communicated for "legitimate reasons." He said his client didn't trade in any securities, didn't tip Rajaratnam so he could trade and didn't share in any profits.

[More...]

Bump and Update: Raj Rajaratnam was sentenced to 11 years, far less than the 19.5 to 24.5 years sought by the Government. The judge did consider his failing health (saying he's likely to need a kidney transplant and suffers from advanced diabetes) and charitable works, but also bumped his guidelines for both having a supervisory role and obstruction of justice in a related civil proceeding (discussed below.)

The Wall. St. Journal reports the judge denied Rajaratman's request for an appeal bond but allowed him to voluntarily surrender to the designated prison on November 28, so he wasn't taken into custody.(See below, the Government did not object to a voluntary surrender of 21 days.)

According to the Times and other media sources, it's the longest sentence ever imposed for insider trading. Raj will serve 85% of the sentence since there is no parole in the federal system, and everyone gets the same amount of good time -- 54 days a year after the first year. [More...]

Galleon founder Raj Rajaratnam has been found guilty of all 14 counts in his insider trading trial. His bond was continued until sentencing, with a condition of home confinement. His lawyer promises an appeal.

Prosecutors say his sentencing guideline range is about 19 1/2 years. Sentencing is set for July 29.

In what is being called the largest insider trading trial in a generation, opening arguments in the trial of Galleon Group's Raj Rajartnam begin today.

Since arresting 53-year-old U.S. citizen Rajaratnam in October 2009 and announcing criminal charges against 26 former traders, executives and lawyers, the U.S. government has pressed ahead with what it calls the biggest probe of insider trading in the $1.9 trillion hedge fund industry. Nineteen people have pleaded guilty in the Galleon case.

There are wiretaps and cooperators galore. There will be a feast of corporate-leaked secrets. It will expose the hedge-fund industry.

Former Goldman Sachs Group director Rajat Gupta, who has not been criminally charged but had civil SEC charges brought against him last week, may play a prominent role. The feds have phone calls in which he allegedly provided Rajaratnam with confidential information from Goldman Sachs. [More...]

Galleon Group founder Raj Rajaratnam has lost his motion to suppress wiretaps.

Thousands of conversations between Mr. Rajaratnam and more than 130 colleagues, employees, friends and family were secretly recorded by federal agents over a nine-month period in 2008.

The Judge did sever some of the conspiracy counts:

Mr. Rajaratnam and Ms. Chiesi are among 24 people charged criminally in a broad probe into insider trading on Wall Street. So far, 14 people have pleaded guilty in the case.