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Raj Rajaratnam: How does he stack up in big insider-trading convictions?

- Aaron CouchContributor

Galleon Group founder Raj Rajaratnam enters Manhattan federal court on the first day of jury selection March 8, 2011, in New York. On May 11, 2011, the once-powerful hedge fund boss was found guilty on all 14 counts of fraud and conspiracy for using insider information to achieve gains of more than $50 million. (Louis Lanzano/AP/File)

2. Raj Rajaratnam (11-year sentence, $10 million fine)

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.


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