(Updates with excerpt from filing in second paragraph.)
Oct. 11 (Bloomberg) -- Galleon Group LLC co-founder Raj Rajaratnam’s gains from insider trading were at least $50 million, U.S. prosecutors said in response to arguments by his lawyers that he doesn’t deserve a stiff sentence for his crimes.
The defense’s calculations on gains Rajaratnam made as a result of his insider-trading scheme “would not come out anywhere close to bringing the overall number below $50 million and thus place Rajaratnam in a different bracket of gain,” prosecutors said today in a filing in federal court in Manhattan.
Rajaratnam, 54, was convicted in May of 14 counts of securities fraud and conspiracy. Prosecutors, saying he made $72 million from his crimes, asked for a prison term of 19 years and seven months to 24 1/2 years, which Rajaratnam’s lawyers called “grotesquely severe.”
Rajaratnam’s lawyers said he made only $7.4 million from the trades. Based on that amount and other findings that Rajaratnam’s lawyers are asking the judge to make, he is seeking a term of 6 1/2 to 8 years, said a person familiar with the defense case who spoke on condition of anonymity.
John Dowd, a lawyer for Rajaratnam, declined to comment on the sentencing range.
Rajaratnam is scheduled to be sentenced by U.S. District Judge Richard Holwell on Oct. 13.
The case is U.S. v. Rajaratnam, 09-01184, U.S. District Court, Southern District of New York (Manhattan).
--Editors: Peter Blumberg, Michael Hytha
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