Ex-Hedge Fund Boss Sentenced To 11 Years In Prison

[pampango]

Source: NPR

A former billionaire described by the government as "the modern face of illegal insider trading" was sentenced Thursday to 11 years in prison, the longest insider trading sentence ever but far short of the two decades sought by prosecutors.

Galleon Group founder Raj Rajaratnam also was fined $10 million by U.S. District Judge Richard J. Holwell, who said he concluded that Rajaratnam made well over $50 million in profits from his illegal trades.

"His crimes and the scope of his crimes reflect a virus in our business culture that needs to be eradicated," Holwell said.

The sentencing culminates a series of convictions and sentencings that followed the October 2009 announcement of Rajaratnam's arrest. More than two dozen people were arrested; all were convicted. The other defendants got sentences ranging from a few months to 10 years.

Read more: http://www.npr.org/2011/10/13/141311454/u-s-seeks-record-sentence-for-ex-hedge-fund-boss

[David Sky]

1. A crooked hedge fund trader? I'm SHOCKED! SHOCKED, I tell you!

May he rot in jail and come out 15 years from now, poor as a church mouse!

Of course, he's probably got a few million stashed away somewhere.

And he doesn't have to report to jail until AFTER Thanksgiving? Why not?

Now how about going after some of the bank execs that traded in hedge funds, too?

[ret5hd]

2. $40M profit ($50M - $10M fine) divided by 11 yrs sentence = $3.6M/yr

Doesn't seem like much of a deterrent to me, letting a thief keep 3.6M for each year he sits.

[David Sky]

7. And if he invests it wisely while in prison, he might double his money, while..

eating and sleeping FREE off the taxpayer's dimes!

[BR_Parkway]

8. Yeah, is there some sort of cap on how much they can fine these jerks?

Because even when they lose, they win it seems.

[Hosnon]

9. Presumably the fine is on top of turning over the $50m. Presumably...

ETA: But it isn't looking like it...

[pansypoo53219]

14. yeah, the govt needs to take at least HALF.

hell, billionare? he has to pay at least 1 BILLION!

[LiberalEsto]

3. How many years will his victims suffer? nt

[russspeakeasy]

4. The lesson : when you steal, steal big...really, really big.

[The Backlash Cometh]

5. Is that the first one?

[ret5hd]

6. well, there was that heinous financial criminal apprehended and sentenced earlier...

Martha Stewart

[The Backlash Cometh]

10. LOL!

[closeupready]

11. In the introduction to Michael Crichton's "The Great Train Robbery", Crichton makes the point that

modern law enforcement literally laughs about the notion that "Crime doesn't pay"; and that the current popular belief is that indeed, crime does pay. I don't subscribe to that, since I have a personal set of ethics, but certainly, if you don't have such ethics, or you are someone who is inclined to commit crime for profit, this case gives one pause for thought, sadly. K&R

edited for typos

[hyphenate]

12. Another one down,

about half a million more to go. There's a quote, I don't remember by who, that goes something like: "The rich--they're not like you and me." I think it describes, in its simplicity, why #Occupy and the rest of us can't reach these people--they are cut off from the rest of us, with little in common. And I'm sure it's why we resent them so much--we all long for the "best" of everything, and these people take all that for granted.

This guy was just one of many whose greed overtook their common decency and grasp, and thankfully he was caught. Too many will never be caught, though, and they will continue to control much of our whole government system, and making it clear that they don't have any time for the rest of us Americans.

[PSPS]

13. I almost feel sorry for this guy.

For some reason, this sap was anointed the fall guy for the institutional criminality. $50 million? That's really small potatoes. But he's serving his purpose well, I guess. His conviction gives the appearance of "cracking down" and "doing something" while the big boys, to whom $50 million covers the tab for a "night out on the town," remain safely out of the limelight and continue to funnel the requires small portion of their multi-billion-dollar take to the various politicians and "regulators" on their payroll.