Raj Rajaratnam

Raj Rajaratnam ( born June 15, 1957 in Colombo, Sri Lanka ) is an American former hedge fund manager. He is co-founder of Galleon Group, an investment company that managed several hedge funds. He was sentenced in October 2011 to 11 years in prison for insider trading.

Life

Rajaratnam was born in 1957 as a Tamil in Sri Lanka and went to school there. After he moved to the UK, he studied engineering at the University of Sussex, East Sussex. In 1981 he moved to the United States and graduated in 1983, his MBA at the Wharton School of the University of Pennsylvania.

He started his career as a loan officer Rajaratnam for high-tech companies at Chase Manhattan Bank. In 1985 he was an analyst for the electronics industry at the investment bank Needham & Co, which he became president in 1991. In 1992 he founded the hedge fund Needham Emerging Growth Partners LP, who invested in shares of technology companies. In 1997 he left Needham with the hedge funds and renamed it in Galleon Technology. He formed with three of his colleagues from Needham, the Galleon Group, which managed several hedge funds.

The Galleon Group had assets under management of up to $ 8.3 billion in 2008, in October 2009, $ 3.7 billion. After Rajaratnam was arrested this month, investors wanted to withdraw huge sums of money. The hedge funds were then closed.

Insider trading and sentencing

Because of an insider trading scandal Rajaratnam was arrested by the FBI along with five other managers on October 16, 2009. He is said to have made ​​a profit of $ 63.8 million after calculating the prosecutor through insider trading. After paying a deposit of 100 million dollars, he was released again on 19 October 2009.

In court, Rajaratnam pleaded not guilty. In May 2011, Rajaratnam by a jury in the U.S. District Court in Manhattan, New York, in Fourteen Points of securities fraud and conspiracy has been found guilty. His lawyer announced vocation. To May 2011, 46 people were suspected to have been accomplices, of which 34 were now condemned. On October 13, 2011, the court laid down the sentence Rajaratnam was sentenced to a prison term of eleven years, the longest ever imposed for insider trading penalty in the United States. He must pay a fine in the amount of ten million dollars as well as give $ 53.8 million wrongful gain. Criminal Soothes were former generous, charitable donations of Rajaratnam and his serious illness. In addition, it was established in November 2011 in a civil proceeding brought by the U.S. Securities and Exchange Commission, was sentenced to a penalty of 92.8 million dollars ( 67 million euros ).

Private

Rajaratnam is married and has three children. His personal fortune was estimated by Forbes magazine in 2009 at $ 1.3 billion (Rank 559).

He donated more than $ 3.5 million to the Tamil Rehabilitation Organization (TRO ) whose assets have been frozen by the Treasury of the United States because of alleged links to the Liberation Tigers of Tamil Eelam ( LTTE) in 2007.