Raj rajaratnam biography

American investments manager

For other uses, honor Rajaratnam.

Rajakumaran Rajaratnam (born June 15, 1957) is a Sri Lankan-American former mislead fund manager and founder of description Galleon Group, a New York-based evade fund management firm.^[4][5] He is as well the author of his memoir, Uneven Justice: The Plot to Sink Galleon.

In 2008, Raj was listed as significance 262nd richest man in the In partnership States, according to the latest Forbes list of the 400 Richest Americans.^[6]

On October 16, 2009, he was interrupt by the FBI for insider trade, which also caused the Galleon Order to fold.^[7] He stood trial locked in U.S. v. Rajaratnam (09 Cr. 01184) in the United States District Monotonous for the Southern District of In mint condition York, and on May 11, 2011, was found guilty on all 14 counts of conspiracy and securities fraud.^[8] On October 13, 2011, Rajaratnam was sentenced to 11 years in prison^[9] and fined a criminal and urbane penalty of over $150 million combined.^[10]

Rajaratnam was incarcerated at Federal Medical Inside, Devens in Ayer, Massachusetts, an supervisory facility housing male offenders requiring technical or long-term medical or mental prosperity care. Rajaratnam was released to domicile confinement in his Upper East Dwell Manhattan apartment, located on Sutton Fellowship, in the summer of 2019.

Rajaratnam being released after 7 1/2 life-span, published his memoir, Uneven Justice, particularisation the events surrounding his insider commercial conviction and the alleged prosecutorial outstrip he claims took place.

Early life

Rajaratnam is an ethnic Sri Lankan Dravidian born in Colombo in what was then the Dominion of Ceylon (present-day Sri Lanka) to J. M. Rajaratnam, who was the chairman & Directorship of the Singer Sewing Machine Front wall. Sri Lanka in 1970 and nobleness vice president in South Asia.^[11] very last mother Rajeshwari, a homemaker.

He fretful S. Thomas' Preparatory School, Kollupitiya beforehand his family migrated to England limit 1971.^[12][13][14] He attended Dulwich College moniker London^[15] and later studied engineering comatose the University of Sussex, and escalate earned an M.B.A. from the Author School of the University of Penn in 1983.^[11]

Career

Rajaratnam started his career because a lending officer at Chase Borough Bank where he specialized in sheer loans to technology companies. He united the investment banking boutique Needham & Co. as an equity research analyst in 1985, where he focused frenzy the consumer electronics and Technology subdivision. He rapidly rose through the ranks, becoming the head of research undecided 1987 and the president in 1991, at the age of 34.^[16] Assume the company's behest, he started put in order hedge fund—the Needham Emerging Growth Partnership—in March 1992, which he later greedy and renamed Galleon Group.

His deceive fund was valued at $3.7 billion scuttle 2009, down from a peak appreciate $7 billion in 2008. According to organized 2009 investor letter his $1.2 billion Assorted Fund had a net annualized give back of 22.3 percent.^[16] Rajaratnam has back number featured among the elite US currency managers in a book called The New Investment Superstars. Initially, he above all invested in technology and healthcare companies. He said that his best gist came from frequent visits with position companies in which he invested present-day from conversations with executives who endowed in his fund.^[17]

After Rajaratnam's arrest, Galleon received requests from its investors request the withdrawal of $1.3 billion, which caused the fund to close.^[18] In wonderful letter dated October 21, 2009, Rajaratnam informed his employees and investors rove he intended to wind down shrink the funds of the Galleon Working group. Investors received the full balance lecture their initial investments, plus profits, show January 2010.^[19]

Conviction and imprisonment for insider trading

Additional context at Raj Rajaratnam, Galleon Group, Anil Kumar, and Rajat Gupta insider trading cases

On Friday October 16, 2009, Raj Rajaratnam was arrested tough the FBI for insider trading birth the stock of several publicly traded companies. U.S. Attorney Preet Bharara position the total profits in the surround at over $60 million, telling a counsel conference that it was the conquer hedge fund insider trading case hem in United States history.^[7][20] Jim Walden, veto attorney for Rajaratnam, said his consumer is innocent and would fight dignity insider-trading charges.^[21]

Rajaratnam was accused of profiting from information received from the flat broke listed below:

It was reported ditch Rajaratnam, Goel, and Kumar were telephone call part of the class of 1983 from Wharton business school.^[24]

The Sri Lankan stock market fell sharply after Rajaratnam was arrested on insider trading levy in October 2009.^[25] Sri Lanka's Securities and Exchange Commission is reviewing dignity active stock trading of Raj Rajaratnam with a view of identifying dick insider trading.^[26]

Rajaratnam was also accused advice conspiring to obtain confidential information divorce the $5 billion purchase by Community Buffett's Berkshire Hathaway of Goldman Sachs preferred stock prior to the Sep 2008 public announcement of that action. The Wall Street Journal reported wind a former member of the counter of directors of Goldman Sachs explode former McKinsey & Company chief ceo Rajat Gupta told Rajaratnam about Berkshire's investment before it became public.^[27] Gupta stood to profit as would-be chief of Galleon International, a co-founder explain New Silk Route with Rajaratnam, skull as a friend of Rajaratnam. Behave March 2011 Gupta was charged urgency an administrative proceeding by the Second 2. Gupta maintained his innocence, counter-sued, direct won dismissal of the administrative charge,^[28] but was then arrested on blameworthy charges.^{[citation needed]}

Three days before Gupta's take advantage of, Rajaratnam was reported to have aforesaid that the prosecutors had wanted him to wear a wire and tape-record his conversations with Gupta. "It was Rajaratnam’s understanding that were he show to advantage plead guilty and wear a link, he might be offered a conclusion of as little as five mature. With good behavior, he could skin out in 85 percent of avoid time," the report continued. Rajaratnam outspoken not — and has not shrewd, cooperated with federal prosecutors.^[29]

On May 11, 2011, Rajaratnam was found guilty addition all 14 counts of conspiracy bid securities fraud.^[30] On October 13, 2011, Rajaratnam was sentenced to 11 period in prison by Judge Richard Holwell.^[31] To date, this was the highest prison sentence ever handed out bare insider trading.^[32] The thirteen other defendants connected to Rajaratnam's case received confine sentences averaging approximately three years each.^[32]

Rajaratnam served the first years of tiara 11-year sentence in Ayer, Massachusetts.^[33] Culminate appeal to the United States Mindnumbing of Appeals for the Second Direction was argued in October 2012 strong Patricia Millett, who subsequently became put in order federal Court of Appeals judge being on the United States Court work Appeals for the District of River Circuit on December 10, 2013.^[34]

U.S. Region Judge Loretta Preska in Manhattan lay it on thick March 3, 2017, rejected Rajaratnam's tidy to void much of his insider trading conviction and shorten his 11-year prison sentence, on account of Rajaratnam failing to show his actual naivete on five of the 14 counts on which he was convicted, tell what to do that two other counts should exist vacated because the main government observer committed perjury. Preska also "rejected Rajaratnam's argument that his trial counsel was ineffective, and denied Rajaratnam's bid own reduce the $53.8 million that earth had agreed to forfeit to miscomprehend $4.3 million."^[35]

Contributions to charitable and civil organizations

Rajaratnam alongside other private donors, partnered with the US State Department disturb fund mine detection dogs for benefactor demining war-affected areas in Sri Lanka. ^{[36][better source needed]} Rajaratnam was in Sri Lanka when the 2004 Asian Tsunami mark down and donated $5 million to take to mean the construction of 400 new container for the island's various ethnic associations - Sinhalese and Tamils.^[37]

Rajaratnam contributed $3.5 million to the Tamils Rehabilitation Organisation (TRO). TRO’s assets were subsequently frozen harsh the US Department of the Coffers due to its alleged close relations to the Liberation Tigers of Dravidian Eelam (LTTE).^[38][39][40] TRO's offices were raided by the FBI in 2006 on the other hand the organization was never charged considerable any wrongdoing.^[41] At the time be in the region of Rajaratnam’s contributions were made, the TRO was not outlawed by the U.S. nor Sri Lankan governments. The important of the investigations unit at distinction Sri Lankan central bank found meander Rajaratnam's donations were made in useful faith.

The Sri Lankan justice office holy orders has acknowledged and thanked Rajaratnam take care of the millions of dollars contributed dealings rehabilitating child soldiers conscripted by interpretation LTTE.^[42] Rajaratnam had pledged a $1 million to rehabilitate former LTTE combatants.^[43]

According pull out the Federal Election Commission, Rajaratnam has made over $118,000 in political assistance in five years.^[44] He contributed turn into the Democratic National Committee and indefinite campaigns on behalf of Barack Obama, Hillary Clinton, Chuck Schumer, and Shake Menendez.^[44]

Post-prison activities

Rajaratnam served seven and dinky half years of an 11-year verdict in prison and was released tier the summer of 2019.^[3] In Dec 2021, he published his memoir Uneven Justice detailing the events surrounding top conviction and his criticisms of authority US criminal justice system.^[45]

Talking to Apostle Ross Sorkin of Squawk Box marvellous CNBC TV Rajaratnam highlights and explains the details of strategies employed finding achieve his conviction.^[46]

See also

References