Over a seven-year period, Raj Rajaratnam used a network of insiders to get advance information on what was going on in public companies to make money at the expense of other investors.
Using an extensive trove of wiretaps – reportedly, the most ever in a case of white-collar crime – prosecutors let jurors hear how Mr. Rajaratnam uncovered key information and was able to trade on it, once making $1 million with a single trade. He even bragged about it in calls to employees, prosecutors said.
After a seven-week trial and more than two weeks of deliberations, the jury found him guilty on all 14 counts – five counts of conspiracy and nine counts of security fraud. His 11-year sentence is the stiffest ever for insider trading. In addition to a $10 million fine, he was ordered to forfeit $53.8 million in illegal gains.