On October 13, 2011, U.S. District Judge Richard J. Holwell sentenced Galleon Management, LLC founder Raj Rajaratnam, 54 years old, to 11 years in prison. See “Implications of the Rajaratnam Verdict for the ‘Mosaic Theory,’ the ‘Knowing Possession’ Standard of Insider Trading and Criminal Wire Fraud Liability in the Absence of a Trade
,” Hedge Fund Law Report, Vol. 4, No. 18 (Jun. 1, 2011). About five months ago, on May 11, 2011, Rajaratnam was convicted of all 14 counts of conspiracy and securities fraud with which he was charged, following an eight-week jury trial. See “On Motion to Set Aside Verdict, Trial Court Upholds All Fourteen Counts of Rajaratnam Insider Trading and Conspiracy Conviction
,” Hedge Fund Law Report, Vol. 4, No. 30 (Sep. 1, 2011). According to the U.S. Attorney’s Office for the Southern District of New York, Rajaratnam’s sentence is the longest sentence to be imposed for insider trading in history. See “Strategies for Avoiding Insider Trading Violations: A Perspective Informed by SEC Service, Private Law Firm Practice and Work as General Counsel of a Hedge Fund Manager
,” Hedge Fund Law Report, Vol. 4, No. 34 (Sep. 29, 2011). In addition to his prison term, Rajaratnam was sentenced to two years of supervised release, ordered to pay forfeiture in the amount of $53,816,434 and ordered to pay a $10 million fine. Rajaratnam is scheduled to surrender to authorities on November 28, 2011. See “How Can Hedge Fund Managers Update Their Insider Trading Compliance Programs to Reflect the SEC’s Focus on Systemic Violators, Gatekeepers, Trading Patterns, Profitable Trades and Expert Networks?
,” Hedge Fund Law Report, Vol. 4, No. 28 (Aug. 19, 2011).