Bloomberg News

Rajaratnam’s Sentencing Rescheduled for Sept. 27, Judge Says

June 30, 2011

(Updates with background of the case beginning in the second paragraph.)

June 30 (Bloomberg) -- Raj Rajaratnam’s sentencing on insider-trading charges was rescheduled to Sept. 27 from July by a federal judge in New York.

Rajaratnam, 54, the co-founder of Galleon Group LLC, is at the center of one of the largest illegal stock-tipping cases ever brought by the U.S. He was found guilty May 11 by a jury on five counts of conspiracy and nine counts of securities fraud.

When he was convicted, U.S. District Judge Richard Holwell set sentencing for July 29. Today’s order by Holwell postponing the date included a letter from prosecutors saying that they and Rajaratnam agreed to it.

The U.S. said Rajaratnam engaged in a seven-year conspiracy to trade on inside information from corporate executives, bankers, consultants, traders and directors of public companies including Goldman Sachs Group Inc. He gained $63.8 million as a result of the scheme, prosecutors said.

Prosecutors said on the day of the verdict that Rajaratnam faces from 15 1/2 years to 19 1/2 years in prison when he is sentenced.

The case is U.S. v. Rajaratnam, 1:09-cr-01184, U.S. District Court, Southern District of New York (Manhattan).

--Editors: Peter Blumberg, Steve Farr

To contact the reporter on this story: Patricia Hurtado in New York at pathurtado@bloomberg.net

To contact the editor responsible for this story: Stephen Farr at sfarr@bloomberg.net


Coke's Big Fat Problem
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus