Judge Fines Ex-Hedge Fund Boss $92M
Tuesday, November 08, 2011
A judge has cited the "huge and brazen" nature of the crime as he imposed a $92 million civil penalty on a hedge fund boss snared in the biggest insider trading case ever.
Federal Judge Jed Rakoff ordered the penalty Tuesday for Raj Rajaratnam and said Rajaratnam's insider trading scheme "cries out for the kind civil penalty that will deprive" him of a material part of his fortune.
The one-time billionaire was convicted earlier this year of insider trading charges and was sentenced last month to 11 years in prison.
Prosecutors said he earned as much as $75 million in illegal profits. They say he acted on secrets he got from friends and colleagues in the securities industry and at public companies.