Raj Rajaratnam, the founder of hedge fund management group Galleon, was today found guilty of all 14 counts of securities fraud and conspiracy. The sentencing means that Rajaratnam could be spending many, many years in the clink.
Rajaratnam was prosecuted following allegations he was paying company insiders for tips which allowed him to make money from investments – insider trading.
His lawyers had tried to keep him out of jail by maintaining for the six week trial that information was already publicly available. They went as far as bringing in papers from internal Galleon analysts showing that this was the case.
They’ll be as gutted as the US government and prosecutors are pleased at today’s result. The case has been full of twists and turns for all involved.
Only last week the case looked as though it could go back to square one when a juror had to be replaced after falling ill.
At the time, prosecutors had to give the OK to release transcripts of wiretap recordings to the jury, which were crucial to the prosecution. Prior to that other witnesses gave evidence against their old mate Rajaratnam. Ex-Intel employee Rajiv Goel was among them, who told the jury that he fed Rajaratnam insider information about his company.
A few weeks ago, jurors deciding the fate of Rajaratnam failed to reach a verdict after a week of deliberations, while there were more rumours that despite facing a long time in the clink, the Galleon founder had emergency foot surgery while he waited for the jury to return.