Raj Rajaratnam, the former hedge- fund manager serving an 11-year prison sentence for insider trading, can have his passport back, along with the title to his $17.5 million Manhattan apartment and $2.5 million in cash. [Bloomberg]
Raj Rajaratnam
This weekend will be the Galleon founder’s last one on the outside for a while. Continue reading »
The convicted insider trader, who was previously scheduled to report to prison for an 11 year sentence at the end of the month, was granted a few extra days of freedom. He’ll now have ’til December 5 to dance like nobody’s watching. [WSJ]
According to a spokeswoman for Manhattan U.S. Attorney Preet Bharara, “a number of the assertions” made by the convicted insider trader in a recent profile for which he cooperated were “inaccurate.” Whether they’re referring to everything he said or to a) Raj’s claim that he was offered a plea deal to wear a wire b) his claim that the day he was arrested, Bharara commented in his ear, “Your wife doesn’t seem so upset. Because she’s going to spend all your money” c) the claim that he was “on an exercise bike” when they busted into his apartment or d) some combination thereof, it wasn’t made clear.
Less than two weeks ago, Raj Rajaratnam was sentenced to 11 years in prison, after being convicted on 14 counts of securities fraud and conspiracy last May. Over the course of the trial, Raj had remained silent, choosing not to take the stand on his own behalf and offering no sound bites to reporters outside the courthouse, speaking only when it was absolutely necessary (to request “extra mayo“) and allowing his lawyer, John Dowd, to do the talking (asking a Wall Street Journal reporter how long one could reasonably expect him to continue “sucking on [U.S. Attorney for the Southern District of New York Preet] Bahara’s teat,” declaring the guilty verdict a “23-14 victory” for the defense, and telling CNBC to “get the fuck out of here“). Recently, however, the former hedge fund manager decided to open up, allowing a reporter into his home where he pulled the curtain back on how this whole thing went down, starting with the state in which the Feds found him that fateful morning.
It was 6 a.m. on Oct. 16, 2009, and Raj Rajaratnam, head of the Galleon Group hedge fund, was at home on* his exercise bike looking out over Manhattan’s Turtle Bay.
Raj could have mentioned that he next moved on to shirtless arm curls and was on 1,003 at the exact moment Bhara and his crew busted into the apartment but felt like bragging. For posterity’s sake, though, it should be noted that he did over 1,000.
Moving on.
What he was actually doing at tipster Rajiv Goel’s home all those times, contrary to what the press and the government would have you believe?
…the prosecution noted that Rajaratnam would visit Goel’s house in Silicon Valley, presumably to talk about Intel. But the real explanation is more human. “His wife makes really good chaat [a savory snack]!”
Okay, that’s believable, but what about the material non-public information he got elsewhere? Continue reading »
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Thirty Months From Now, Danielle Chiesi Could Be Working You For Stock Tips While She Works On Your Cuticles
By Bess Levin
This afternoon, Danielle Chiesi will report to a West Virginia prison for a 30-month stay, for her role in the Galleon insider trading case, wherein she passed valuable tips on to Raj Rajaratnam after the tech execs she worked closely with passed her a few of their own. Chiesi will be bunking at Federal Prison Camp Alderson (former home of Martha Stewart, where “women hide sugar packets and crackers in their socks and conceal larger items like eggs under their shirts”), and while Bloomberg reports that the former beauty queen/Newscastle analyst won’t be living alongside ‘sadistic crack-selling lesbian rapists‘ (“It’s more college campus than Chained Heat, the 1983 exploitation film about women in jail” we’re assured), there may still be a few aspects of prison life about which D-Chi (“they give each other nicknames,” says one former resident) will be less than thrilled. Such as: Continue reading »
In sentencing Raj Rajaratnam to 11 years in prison for insider-trading charges, U.S. District Judge Richard Holwell said Rajaratnam’s ill health justified some leniency in sentencing…Former BOP official, Phillip Wise, says Rajaratnam in 2007 suffered a “severe cryptogenic stroke,” or a stroke with no obvious cause. According to the document released by the court, Rajaratnam also has been diagnosed with high blood pressure, high cholesterol, “marked obstructive sleep apnea” and Type II diabetes. The doctor said Rajaratnam’s diabetes “remains under poor control,” resulting in damage to his nerves, eyes and kidneys, and chronic anemia. [Deal Journal, earlier]
The defense had asked for 6.5 to 8 years on account of 1) the fact that, they say, Raj only made $7.4 million off his trades and 2) the “unique constellation of ailments ravaging his body” that would result in him dying behind bars if given a sentence “anywhere near” the prosecution’s request for 19.5 to 24 years. Continue reading »
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Reader Poll: How Long Will Raj Rajaratnam Suffer The Indignity Of Unflattering Jumpsuits?
By Bess Levin
At some point tomorrow, Raj Rajaratnam will be sentenced for the 14 counts of securities fraud and conspiracy he was found guilty on in May. The prosecution, which claims the Galleon founder netted “at least” $50 million in ill-gotten gains, has requested he go away for anywhere between 19 years and seven months to 24 1/2 years, while the defense, which argues Raj scored a mere $7.4 million, would prefer 6 1/2 to 8 years. To that end, the Rajaratnam team led by attorney John “How long are you going to suck [U.S. Attorney for the Southern District of New York] Preet’s teat” Dowd has 1) asked friends of Raj to send character letters to Judge Howell highlighting what a great guy he is and 2) made the bold statement that Rajaratnam is suffering from a “unique constellation of ailments ravaging his body” and that he will most certainly “perish if given a lengthy prison term.” To date, individuals vaguely and otherwise connected to the Galleon case have been sentenced to 2.5 years (Danielle Chiesi), 3 years (Emanuel Goffer), 4 years (lobster fiend) 10 years (Zvi Goffer). So! Continue reading »
Judge Semi-Swayed By Former Galleon Group Employee’s Plea For Sentencing Leniency Due To Son’s Slow Start On Crawling
By Bess Levin
As previously discussed, Raj Rajaratnam is scheduled to be sentenced next week for his insider trading. The prosecution would like the Galleon Group founder to go away for twenty to twenty four years, while the defense would like way, way less time than that and are banking on the judge being swayed by the argument that Raj is in far too fragile a state for such a lengthy stay, owing to “a unique constellation of ailments ravaging his body.” Whether this excuse will work remains to be seen (and the prosecution has already put it out there that they’re calling bull shit) but today we’ve learned that what appears to sort of work, if you’re writing these down for potential future use, is saying that your kid’s less than stellar crawling skills and/or ability to color within the lines precludes you from going away for too long. Continue reading »
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We May Soon Find Out What The “Unique Constellation Of Ailments Ravaging” Raj Rajaratnam’s Body Are, Specifically
By Bess Levin
On October 13, Judge Richard Holwell will pass down a sentence for convicted insider trader, Raj Rajaratnam. If the prosecution has its way, the Galleon Group founder will go away for twenty-four years. Obviously, the defense would prefer a little less time and in August, following Raj’s brother’s unsuccessful appeal for people to send character letters to the judge asking for lenience, turned to Plan B: breaking the news that Raj is suffering from a disease the likes of which you can’t even imagine, noting in a court filing that he will die from “unique constellation of ailments ravaging his body” if given anything even approaching twenty years. This, clearly, was well-played. Continue reading »
