Raj Rajaratnam

  • 08 Jul 2014 at 3:55 PM

Only 50% Of Rajaratnam Brothers Will Do Time

Unlike his brother Raj, currently serving an 11 year sentence for securities fraud, Rengan Rajaratnam will not spend time in the big house. Read more »

Last August, a report came out claiming that Raj Rajaratnam was having the time of his life in prison. As someone who went to great lengths to avoid going to jail (not so much by staying on the right side of securities laws but by paying a high-priced lawyer to accuse people churning out supposedly slanted coverage of his client of “sucking [U.S. Attorney for the Southern District of New York] Preet Barhara’s teat“), this revelation came as a surprise. As a hedge fund billionaire who’d grown used to a luxurious lot in which he paid many people to keep him comfortable and content, there was an expectation that life on the inside would come as a rude awakening. And, yet, the report claimed that Raj was “reigning like a king,” “doing his time in the lap of luxury compared to other inmates,” with a set-up that included:

  • A private toilet
  • A shared balcony
  • An adjustable bed
  • “A very delightful guy doing all sorts of stuff for him– sort of like a ‘manservant’”
  • An inmate who cooks for him using a microwave when he “doesn’t want to hoof it to the dining hall”

Unfortunately for anyone anticipating doing time on the inside, all of these perks apparently come at a cost, according to a guy who claims Raj had to pay a number people off to arrange the manservant and en-suite, among other things. Read more »

On Tuesday, Rajat K. Gupta, the former managing director of the consulting firm McKinsey & Company who was convicted of insider trading, is scheduled to report to a minimum-security prison camp in Massachusetts, spending the next two years not far from his one-time friend and partner in crime, Raj Rajaratnam…In an interesting twist, Mr. Rajaratnam, the man to whom Mr. Gupta was convicted of giving corporate secrets on a raft of companies, including Goldman Sachs, is in FMC Devens’ federal medical center. Mr. Rajaratnam, the founder of New York hedge fund Galleon Group, is a diabetic and FMC Devens’ medical unit provides dialysis. His facility is next to the satellite camp where Mr. Gupta will be. One of the differences between the two prisons is that Mr. Rajaratnam has slightly longer visiting hours. On Fridays, he can mix with friends and family from 8:30 a.m. to 3 pm; Mr. Gupta can receive guests only from 2:30 p.m. to 8:30 p.m. [Dealbook]

  • 10 Feb 2014 at 2:01 PM

Rengan Rajaratnam: I’m telling mom!

Rengan Rajaratnam, the younger brother of imprisoned hedge fund manager Raj Rajaratnam, urged a U.S. judge on Friday to dismiss insider trading charges leveled against him last year. In a motion filed in U.S. District Court in New York, his lawyers argued the government had taken positions in the indictment that contradicted positions prosecutors took in trying his older brother for insider trading. “Principles of fairness dictate that Rengan, at a minimum, should be tried under the same standard as Raj,” the defense lawyers wrote in the motion. [Reuters]

If various sources are to be believed, Raj Rajaratnam is having the time of his life in prison, where he’s “reigning like a king,” “has a very delightful guy doing all sorts of stuff for him — sort of like a ‘manservant’,” enjoys a private en suite, balcony, and adjustable bed, and gets along smashingly with his fellow inmates, who can’t help but notice how downright svelte he’s become. All that’s a good thing, as we’ve just received word he won’t be leaving any time soon. Read more »

Earlier this week, SAC Capital agreed to plead guilty to insider trading and pay a $1.8 billion fine. Some people– namely, the Department of Justice, Steve Cohen and those who work for him– are, if not wildly pleased with the terms, at least prepared to go along with them, assuming it is approved this afternoon . Others, namely shareholders of Wyeth and Elan, feel differently. They want U.S. District Judge Laura Swain Taylor to reject the agreement outright and as for what kind of punishment should be dealt out instead? “Eddy N” has some ideas. Read more »

A former Akamai Technologies Inc official agreed to pay over $145,000, and be banned from serving as a public company officer or director, to settle civil charges he provided illegal tips that were funneled to Raj Rajaratnam, the hedge fund manager imprisoned for insider trading. The U.S. Securities and Exchange Commission said Kieran Taylor, a former Akamai senior director of marketing, illegally tipped lifelong family friend Danielle Chiesi, a hedge fund manager at New Castle Funds, about the Internet content delivery company’s plan in July 2008 to lower its revenue forecast…”Taylor’s willing misuse of information about Akamai’s financial situation otherwise unknown to the rest of the investing public made him just another cog in the sprawling Rajaratnam insider trading machine,” said Sanjay Wadhwa, senior associate director for enforcement in the SEC’s New York office. [Reuters]