Raj Rajaratnam, a former hedge fund manager who co-founded Galleon Group, was sentenced to 11 years in prison and ordered to pay a US$10 million (Dh36.7m) fine in federal court in Manhattan yesterday for conspiracy and securities fraud.
He was convicted of 14 charges in May in the biggest insider trading scandal seen on Wall Street since the 1980s.
"Raj Rajaratnam's criminal conduct was brazen, arrogant, harmful and pervasive," the assistant US attorneys Jonathan Streeter, Reed Brodsky and Andrew Michaelson said in court papers. "He corrupted old friends. He corrupted subordinates. He corrupted entire markets. Day after day, month after month, year after year, Rajaratnam operated as a billion-dollar force of deception and corruption on Wall Street."
Rajaratnam, 54, a US citizen, was arrested in 2009 and convicted on the basis of telephone conversations recorded by the FBI.
Before handing down the sentence, Judge Richard Holwell said Rajaratnam made up to $100m from trading with insider information.
The Galleon trial is the second major criminal scandal to hit Wall Street since the beginning of the global financial crisis in 2008. But it was eclipsed by the 150-year prison sentence handed down to Bernard Madoff for masterminding a $65 billion Ponzi scheme.
Rajaratnam's trial has been seized upon by critics of capitalism, many of whom are taking part in the Occupy Wall Street protests that spread to London yesterday.
Having bemoaned his portrayal as a "poster-child for every wrongful act that has ever been associated with Wall Street", lawyers for Rajaratnam had pointed to a "degenerative" illness in their appeal for a shorter sentence. The judge said he suffered from diabetes.
"Any significant term of incarceration would seriously threaten his wellbeing and be life-threatening," his lawyers had argued.
Rajaratnam has been hospitalised several times this year, a defence lawyer said yesterday.
The judge said he considered Rajaratnam's need for kidney transplant surgery in the sentence.
Prosecutors had appealed for a sentence of up to 24 and a half years. Prior to Rajaratnam's sentencing, the longest prison term for insider trading was 10 years.
Among the evidence cited by prosecutors were trades made ahead of an acquisition in October 2008 by Mubadala Development, a strategic investment company owned by the Abu Dhabi Government, of shares in Advanced Micro Devices (AMD), a chip maker.
The scandal forced the resignation of Rajat Gupta, the former global head of McKinsey & Co, a consultancy, from a number of the boards, including Goldman Sachs and Procter & Gamble.
The US securities and exchange commission dropped an administrative proceeding against Mr Gupta in August, though the regulator left the door open to pursuing further civil charges against him.
[ ghunter@thenational.ae ]
COMPANY PROFILE:
Name: Envision
Started: 2017
Founders: Karthik Mahadevan and Karthik Kannan
Based: The Netherlands
Sector: Technology/Assistive Technology
Initial investment: $1.5 million
Current number of staff: 20
Investment stage: Seed
Investors: 4impact, ABN Amro, Impact Ventures and group of angels
COMPANY PROFILE
Company name: Mozn
Started: 2017
Founders: Mohammed Alhussein, Khaled Al Ghoneim, Abdullah Alsaeed and Malik Alyousef
Based: Riyadh, Saudi Arabia
Industry: FinTech
Funding: $10 million
Investors: Raed Ventures, Shorooq Partners, VentureSouq, Sukna Ventures and others
My Country: A Syrian Memoir
Kassem Eid, Bloomsbury
Company profile
Company name: Hayvn
Started: 2018
Founders: Christopher Flinos, Ahmed Ismail
Based: Abu Dhabi, UAE
Sector: financial
Initial investment: undisclosed
Size: 44 employees
Investment stage: series B in the second half of 2023
Investors: Hilbert Capital, Red Acre Ventures
Company profile
Company name: Shipsy
Year of inception: 2015
Founders: Soham Chokshi, Dhruv Agrawal, Harsh Kumar and Himanshu Gupta
Based: India, UAE and Indonesia
Sector: logistics
Size: more than 350 employees
Funding received so far: $31 million in series A and B rounds
Investors: Info Edge, Sequoia Capital’s Surge, A91 Partners and Z3 Partners
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THE SPECS
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FA Cup semi-finals
Saturday: Manchester United v Tottenham Hotspur, 8.15pm (UAE)
Sunday: Chelsea v Southampton, 6pm (UAE)
Matches on Bein Sports
Company Profile
Company name: Namara
Started: June 2022
Founder: Mohammed Alnamara
Based: Dubai
Sector: Microfinance
Current number of staff: 16
Investment stage: Series A
Investors: Family offices
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
ABU DHABI'S KEY TOURISM GOALS: BY THE NUMBERS
By 2030, Abu Dhabi aims to achieve:
• 39.3 million visitors, nearly 64% up from 2023
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Indika
Developer: 11 Bit Studios
Publisher: Odd Meter
Console: PlayStation 5, PC and Xbox series X/S
Rating: 4/5
Ten10 Cricket League
Venue and schedule Sharjah Cricket Stadium, December 14 to 17
Teams
Maratha Arabians Leading player: Virender Sehwag; Top picks: Mohammed Amir, Imad Wasim; UAE players: Shaiman Anwar, Zahoor Khan
Bengal Lions Leading player: Sarfraz Ahmed; Top picks: Sunil Narine, Mustafizur Rahman; UAE players: Mohammed Naveed, Rameez Shahzad
Kerala Kings Leading player: Eoin Morgan; Top picks: Kieron Pollard, Sohail Tanvir; UAE players: Rohan Mustafa, Imran Haider
Pakhtoons Leading player: Shahid Afridi; Top picks: Fakhar Zaman, Tamim Iqbal; UAE players: Amjad Javed, Saqlain Haider
Punjabi Legends Leading player: Shoaib Malik; Top picks: Hasan Ali, Chris Jordan; UAE players: Ghulam Shabber, Shareef Asadullah
Team Sri Lanka Cricket Will be made up of Colombo players who won island’s domestic limited-overs competition
Essentials
The flights
Emirates and Etihad fly direct from the UAE to Los Angeles, from Dh4,975 return, including taxes. The flight time is 16 hours. Alaska Airlines, United Airlines, Delta Air Lines, Aeromexico and Southwest all fly direct from Los Angeles to San Jose del Cabo from Dh1,243 return, including taxes. The flight time is two-and-a-half hours.
The trip
Lindblad Expeditions National Geographic’s eight-day Whales Wilderness itinerary costs from US$6,190 (Dh22,736) per person, twin share, including meals, accommodation and excursions, with departures in March and April 2018.
The specs: 2019 BMW i8 Roadster
Price, base: Dh708,750
Engine: 1.5L three-cylinder petrol, plus 11.6 kWh lithium-ion battery
Transmission: Six-speed automatic
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Fuel economy, combined: 2.0L / 100km
COMPANY PROFILE
Company: Growdash
Started: July 2022
Founders: Sean Trevaskis and Enver Sorkun
Based: Dubai, UAE
Industry: Restaurant technology
Funding so far: $750,000
Investors: Flat6Labs, Plus VC, Judah VC, TPN Investments and angel investors, including former Talabat chief executive Abdulhamid Alomar, and entrepreneur Zeid Husban
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
'Falling for Christmas'
Director: Janeen Damian
Stars: Lindsay Lohan, Chord Overstreet, Jack Wagner, Aliana Lohan
Rating: 1/5
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In the box: iPhone 15 Pro Max, USB-C-to-USB-C woven cable, one Apple sticker
Price: Dh5,099 / Dh5,949 / Dh6,799
New Zealand 57-0 South Africa
Tries: Rieko Ioane, Nehe Milner-Skudder (2), Scott Barrett, Brodie Retallick, Ofa Tu'ungfasi, Lima Sopoaga, Codie Taylor. Conversions: Beauden Barrett (7). Penalty: Beauden Barrett
SPECS
Engine: 2-litre 4-cylinder turbo and 3.6-litre V6
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