Raj Rajaratnam Files to Challenge Insider Conviction, 11-Year Prison Term
Galleon Group LLC co-founder Raj Rajaratnam filed a notice of appeal of his convictions for running an insider-trading ring, as well as formally notifying the court that he will challenge his prison sentence.
Rajaratnam, 54, was sentenced to 11 years in prison by U.S. District Judge Richard Holwell in Manhattan on Oct. 13, the longest term ever for insider trading. Rajaratnam filed the notice of appeal the same day. It was entered into public court records today.
Holwell has recommended sending Rajaratnam to the federal medical center in Butner, North Carolina, because of his health problems, which include diabetes. He’s scheduled to surrender on Nov. 28.
Rajaratnam is the central figure in what U.S. investigators called the largest hedge fund insider-trading case in U.S. history. The federal probe, which included tapping Rajaratnam’s phone, led to convictions of more than two dozen people. A federal jury in Manhattan convicted Rajaratnam on May 11 of all 14 counts of securities fraud and conspiracy against him.
Samidh Guha, an attorney for Rajaratnam, has said the defense would challenge the use of wiretaps.
Prosecutors said the hedge-fund manager made more than $72 million by using illegal tips to trade in stocks including Goldman Sachs Group Inc. (GS), Intel Corp. (INTC), Google Inc., ATI Technologies Inc. and Clearwire Corp.
Holwell denied a request by Rajaratnam’s lawyers to allow their client to remain free while appealing his conviction. He is out on bail until he reports to prison.
The case is U.S. v. Rajaratnam, 09-01184, U.S. District Court, Southern District of New York (Manhattan).
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