Breaking News

Dollar General Reaffirms Commitment to Buying Family Dollar
Tweet TWEET

Rajaratnam Sentencing Is Delayed Two Months After 14 Guilty Counts by Jury

Raj Rajaratnam’s sentencing on insider-trading charges was rescheduled to Sept. 27 from July by a federal judge in New York.

Rajaratnam, 54, the co-founder of Galleon Group LLC, is at the center of one of the largest illegal stock-tipping cases ever brought by the U.S. He was found guilty May 11 by a jury on five counts of conspiracy and nine counts of securities fraud.

When he was convicted, U.S. District Judge Richard Holwell set sentencing for July 29. Today’s order by Holwell postponing the date included a letter from prosecutors saying that they and Rajaratnam agreed to it.

The U.S. said Rajaratnam engaged in a seven-year conspiracy to trade on inside information from corporate executives, bankers, consultants, traders and directors of public companies including Goldman Sachs Group Inc. He gained $63.8 million as a result of the scheme, prosecutors said.

Prosecutors said on the day of the verdict that Rajaratnam faces from 15 1/2 years to 19 1/2 years in prison when he is sentenced.

The case is U.S. v. Rajaratnam, 1:09-cr-01184, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Patricia Hurtado in New York at pathurtado@bloomberg.net

To contact the editor responsible for this story: Stephen Farr at sfarr@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.