Oct. 27 (Bloomberg) -- Galleon Group LLC co-founder Raj Rajaratnam, found guilty of insider trading, seeks to remain out of prison while fighting his conviction, saying he isn’t a flight risk or a danger to the community.
The law requires that a defendant is released if “the appeal is not for the purpose of delay and ‘raises a substantial question of law or fact likely to result’ in reversal or a new trial,” lawyers for Rajaratnam said in an Oct. 25 request to the U.S. Appeals Court in New York.
Rajaratnam, 54, was sentenced by U.S. District Judge Richard Holwell in Manhattan on Oct. 13 to 11 years in prison, the longest term ever for insider trading. Holwell has recommended sending Rajaratnam to the federal medical center in Butner, North Carolina, because of his health problems, which include diabetes. He’s scheduled to surrender Nov. 28.
Holwell denied a request by Rajaratnam’s lawyers to allow their client to remain free while appealing his conviction. He is out on bail until he reports to prison.
The case is U.S. v. Rajaratnam, 09-01184, U.S. District Court, Southern District of New York (Manhattan).
--With assistance from Patricia Hurtado in New York. Editors: Michael Hytha, Peter Blumberg
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