Sri Lankan born hedge fund tycoon Raj Rajaratnam, convicted in the biggest Wall Street insider-trading case in decades, will hear his punishment in court today with all signs pointing to a lengthy prison term.
Rajaratnam, 54, whose Galleon Group managed $7 billion at its peak, could face almost 25 years in prison. His lawyers are asking for a shorter term, arguing he is in poor health and does not deserve a two-decade prison term akin to what a violent offender would receive.
Rajaratnam is the central figure in a sweeping insider trading case that touched some of America’s top companies, including Goldman Sachs Group Inc, Intel Corp, IBM and the elite McKinsey & Co consultancy. It is the biggest insider trading case since the 1980s-era prosecutions of speculator Ivan Boesky and junk-bond financier Michael Milken.