Ilya Marritz covers business for WNYC.
Hedge Fund Boss Raj Rajaratnam Reports to Prison
Monday, December 05, 2011 - 12:00 AM
New York hedge fund billionaire Raj Rajaratnam, who was convicted in a vast insider trading scheme, reported to a federal prison in Ayer, Massachusetts, Monday.
U.S. Bureau of Prisons spokesperson said Rajaratnam reported to Federal Medical Center Devens at about 12:30 p.m.
Rajaratnam, 54, was sentenced in Manhattan federal court in October to 11 years in prison — the longest term ever in an insider trading case.
The hedge fund boss was convicted on all 14 counts of securities fraud and conspiracy.
Prosecutors said Rajaratnam over several years cultivated contacts with knowledge of confidential information about publicly traded companies, and used the information to reap tens of millions of dollars in illegal profits for Galleon hedge fund, which he founded.
The key evidence in the case was hours of wiretap evidence from Rajaratnam's phone conversations with these friends and acquaintances.
After his conviction, Rajaratnam's lawyers petitioned to keep him free on $100 million bail, pending appeal, but a judge declined the motion.
Rajaratnam's new home is a federal facility designed to accommodate inmates needing medical care. Rajaratnam suffers from diabetes.
He is appealing his conviction on the grounds that prosecutors did not obtain proper permissions to tap his phone.
A native of Sri Lanka, Rajaratnam found success as a hedge fund manager in New York. He is known as a patron of several charities, including the Harlem Children's Zone.
With the Associated Press