Raj Rajaratnam

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Raj Rajaratnam (born June 15, 1957 in Colombo , Sri Lanka ) is a former American hedge fund manager . He is a co-founder of the Galleon Group , an investment company that managed several hedge funds. He was sentenced to 11 years in prison for insider trading in October 2011 .

Life

Rajaratnam was born in 1957 as Tamil in Sri Lanka and attended school there. After moving to the UK, he studied engineering at the University of Sussex in East Sussex . In 1981 he moved to the United States and in 1983 received his MBA from the Wharton School of the University of Pennsylvania .

Rajaratnam began his professional career as a loan officer for high-tech companies at Chase Manhattan Bank . In 1985 he became an electronics industry analyst at the investment bank Needham & Co , of which he became president in 1991. In 1992 he founded the hedge fund Needham Emerging Growth Partners LP , which invested in stocks of technology companies. In 1997 he left Needham with the hedge fund and renamed it Galleon Technology . He and three of his co-workers from Needham formed the Galleon Group , which managed several hedge funds.

The Galleon Group had assets under management of up to $ 8.3 billion in 2008 and $ 3.7 billion in October 2009. After Rajaratnam was arrested earlier this month, investors wanted to withdraw huge sums of money. The hedge funds were then closed.

Insider trading and conviction

Rajaratnam was arrested by the FBI on October 16, 2009 along with five other managers because of an insider trading scandal . According to the prosecutor's office, he is said to have made a profit of $ 63.8 million through insider trading. After paying bail of $ 100 million, he was released on October 19, 2009.

In court, Rajaratnam pleaded not guilty. In May 2011, Rajaratnam was found guilty of fourteen counts of securities fraud and conspiracy by a jury in the US District Court in Manhattan , New York. His lawyer announced his appeal . By May 2011, 46 people were suspected of having been accomplices, 34 of whom have now been convicted. On October 13, 2011, the court decided that Rajaratnam was sentenced to 11 years' imprisonment, the longest sentence ever imposed for insider trading in the United States. He has to pay a $ 10 million fine and surrender $ 53.8 million in illicit profits. Earlier generous, charitable donations from Rajaratnam and his serious illness helped mitigate the penalty. In addition, it was established in November 2011 in a civil case, strained by the US Securities and Exchange Commission SEC , to a fine of 92.8 million dollars (67 million euros) condemned. In 2019 he was released from prison after 8 years in prison, he can serve the rest of his sentence in his Manhattan apartment, and during the day he is allowed to work outside. He was previously held at Devens Federal Hospital, a prison outside of Boston . He does not have to wear an electronic ankle cuff , he benefits from a law from 2018 that provides for relaxation for elderly or sick prison inmates.

Private

Rajaratnam is married and has three children. Forbes 2009 business magazine estimated his personal fortune at $ 1.3 billion (559th place).

He donated more than $ 3.5 million to the Tamil Rehabilitation Organization (TRO), whose assets were frozen by the United States Treasury Department in 2007 for alleged links with the Liberation Tigers of Tamil Eelam (LTTE).

Web links

Individual evidence

  1. ^ A b Raj Rajaratnam Became Billionaire Demanding Edge (Update2). In: Bloomberg, October 19, 2009
  2. ↑ # 236 Raj Rajaratnam - The Forbes 400 Richest Americans 2009 . In: Forbes Magazine , September 30, 2009
  3. ^ A b Profile: Raj Rajaratnam . In: Financial Times , October 16, 2009 (registration required)
  4. ^ Profiles Galleon Group. ( Memento of February 8, 2009 in the Internet Archive ) In: siliconiran.com, accessed October 14, 2011
  5. ^ Website Galleon Group. ( Memento from April 5, 2005 in the Internet Archive )
  6. ^ Galleon Clients Abandon Ship . In: Wall Street Journal , October 21, 2009
  7. ^ Galleon to Wind Down Hedge Funds . In: Wall Street Journal , October 21, 2009
  8. ↑ a b US billionaire Rajaratnam is going to jail . Spiegel Online , May 11, 2011
  9. ↑ How Rajaratnam, a millionaire trader, was exposed . Spiegel Online , October 19, 2009
  10. ^ Wall Street bankers helped Tamil rebels . sueddeutsche.de from October 19, 2009
  11. ↑ Rigorous against insider trading . sueddeutsche.de , May 11, 2011
  12. ^ Galleon's Rajaratnam Found Guilty . In: The New York Times , May 11, 2011
  13. ↑ Inside king Rajaratnam has been behind bars for eleven years . ( Memento from October 15, 2011 in the Internet Archive ) stern.de, October 13, 2011
  14. ^ Galleon Chief Sentenced to 11-Year Term in Insider Case . In: The New York Times , October 13, 2011
  15. ^ Judge punishes Wall Street . Spiegel Online , October 13, 2011
  16. ^ Raj Rajaratnam - Galleon Group Founder Convicted in Insider Trading Case . In: The New York Times , October 13, 2011
  17. ↑ US court sentenced Rajaratnam to a record fine . In: Manager Magazin , November 9, 2011
  18. ^ Tillmann Neuscheler: Hedge fund manager released from prison. In: FAZ.net , September 6, 2019.
  19. ^ The World's Billionaires 2009. # 559 Raj Rajaratnam . In: Forbes Magazine , November 3, 2009
  20. ^ Raj Rajaratnam simultaneously funds Sri Lanka terror group and US Democratic Party . In: Asian Tribune , October 18, 2009
  21. ↑ Sri Lanka born Raj Rajaratnam indicted by FBI for alleged insider trading in New York . In: Asian Tribune , October 17, 2009
personal data
SURNAME Rajaratnam, Raj
BRIEF DESCRIPTION American entrepreneur
DATE OF BIRTH June 15, 1957
PLACE OF BIRTH Colombo , Sri Lanka