Rajaratnam Friend Goel’s Sentencing Postponed Until January
Goel had been set to be sentenced in Manhattan federal court last month. In response to a letter from prosecutors seeking a delay, U.S. District Judge Richard Holwell yesterday set the January date. The decision was posted on the docket today.
Goel pleaded guilty to conspiracy and securities fraud in February 2010, and testified in March against the Galleon Group LLC co-founder in a bid for leniency. Goel said he had known Rajaratnam for 25 years and said he told him about Intel’s earnings in 2007 and a $1 billion transaction in 2008.
The top penalty for insider trading is 20 years in prison, prosecutors said at the time of Goel’s plea. Rajaratnam, 54, the central figure in what U.S. investigators called the largest hedge fund insider trading case in U.S. history, was sentenced to 11 years in prison on Oct. 13.
Goel said he and Rajaratnam became friends at the Wharton School at the University of Pennsylvania, from which they graduated in 1983, and grew close over ensuing years. The families vacationed together, said Goel, a native of Mumbai.
Goel, who worked in Intel’s treasury unit, was arrested along with Rajaratnam in 2009, charged with passing tips about a firm that Santa Clara, California-based Intel made an investment in as well information about Intel’s $1 billion investment in a new wireless network company formed by Clearwire Corp. and Sprint Nextel Corp.
As a result of these tips, Rajaratnam made at least $579,000 in profit, prosecutors said. In return, Rajaratnam placed trades in a personal brokerage account maintained by Goel, according to Goel.
The case is U.S. v. Goel, 10-cr-90, U.S. District Court, Southern District of New York (Manhattan).
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