Rajaratnam Sentencing Hearing Set for October 4 as Losses from Crimes Determined

U.S. District Judge Richard Holwell will preside over the sentencing hearing for Raj Rajaratnam, the co-founder of Galleon Group LLC, on October 13, following a two-day hearing on October 4 to determine the amount of losses from his crimes. Rajaratnam, 54, was convicted in May on all 14 criminal counts against him, resulting in alleged losses of $63.8 million and profits of $53.8 million for Galleon, as well as avoided losses of $9.9 million.

Key Takeaways:

• Rajaratnam, 54, is set to be sentenced on October 13 after a two-day hearing on October 4 to determine the amount of losses from his crimes.
• Prosecutors have estimated losses of $63.8 million and profits of $53.8 million for Galleon, as well as avoided losses of $9.9 million.
• Rajaratnam's lawyers argued that the government's loss calculation "massively overstates the seriousness of the offense."
• Prosecutors have requested a prison term of 19 years and seven months to 24 1/2 years, calling Rajaratnam "the modern face of illegal insider trading."
• The insider-trading case was the largest brought by the U.S. in a generation and the first to make extensive use of wiretaps.

Statistics:

• Estimated losses from Rajaratnam's crimes: $63.8 million
• Estimated profits for Galleon: $53.8 million
• Avoided losses for Galleon: $9.9 million
• Requested prison term: 19 years and seven months to 24 1/2 years

Sources:

• Bloomberg News, October [no date given]
• Toronto Star, [no reference date]