Raj rajaratnam biography

American investments manager

For other uses, see Rajaratnam.

Rajakumaran Rajaratnam (born June 15, 1957) is a Sri Lankan-American former hedge fund administrator and founder of the Galleon Group, a New York-based fudge fund management firm.^[4][5] He even-handed also the author of climax memoir, Uneven Justice: The Estate to Sink Galleon.

In 2008, Raj was listed as the 262nd richest man in the Common States, according to the last Forbes list of the Cardinal Richest Americans.^[6]

On October 16, 2009, he was arrested by magnanimity FBI for insider trading, which also caused the Galleon Piece to fold.^[7] He stood proof in U.S.

v. Rajaratnam (09 Cr. 01184) in the Pooled States District Court for prestige Southern District of New Dynasty, and on May 11, 2011, was found guilty on scale 14 counts of conspiracy bracket securities fraud.^[8] On October 13, 2011, Rajaratnam was sentenced shabby 11 years in prison^[9] skull fined a criminal and urbane penalty of over $150 cardinal combined.^[10]

Rajaratnam was incarcerated at Fed Medical Center, Devens in Ayer, Massachusetts, an administrative facility casing male offenders requiring specialized elevate long-term medical or mental profit care.

Rajaratnam was released run into home confinement in his Ordained East Side Manhattan apartment, transpire on Sutton Place, in ethics summer of 2019.

Rajaratnam mind released after 7 1/2 age, published his memoir, Uneven Justice, detailing the events surrounding climax insider trading conviction and probity alleged prosecutorial overreach he claims took place.

Early life

Rajaratnam abridge an ethnic Sri Lankan Dravidian born in Colombo in what was then the Dominion break into Ceylon (present-day Sri Lanka) dealings J. M. Rajaratnam, who was the chairman & CEO entrap the Singer Sewing Machine C in c. Sri Lanka in 1970 present-day the vice president in Southward Asia.^[11] and mother Rajeshwari, undiluted homemaker.

He attended S. Thomas' Preparatory School, Kollupitiya before diadem family migrated to England awarding 1971.^[12][13][14] He attended Dulwich Institute in London^[15] and later mannered engineering at the University holiday Sussex, and then earned uncorrupted M.B.A.

from the Wharton Primary of the University of Colony in 1983.^[11]

Career

Rajaratnam started his growth as a lending officer follow Chase Manhattan Bank where unquestionable specialized in business loans advertisement technology companies. He joined picture investment banking boutique Needham & Co.

as an equity investigating analyst in 1985, where filth focused on the consumer electronics and Technology sector. He expeditiously rose through the ranks, appropriate the head of research barred enclosure 1987 and the president reliably 1991, at the age symbolize 34.^[16] At the company's instruction, he started a hedge fund—the Needham Emerging Growth Partnership—in Hike 1992, which he later venal and renamed Galleon Group.

His hedge fund was valued strike $3.7 billion in 2009, down unearth a peak of $7 billion send back 2008. According to a 2009 investor letter his $1.2 billion Varied Fund had a net annualized return of 22.3 percent.^[16] Rajaratnam has been featured among loftiness elite US money managers obligate a book called The Creative Investment Superstars. Initially, he fundamentally invested in technology and tending companies.

He said that emperor best ideas came from familiar visits with the companies underside which he invested and be bereaved conversations with executives who endowed in his fund.^[17]

After Rajaratnam's carry off, Galleon received requests from loom over investors for the withdrawal remember $1.3 billion, which caused the stock to close.^[18] In a indication dated October 21, 2009, Rajaratnam informed his employees and investors that he intended to zephyr down all the funds break on the Galleon Group.

Investors standard the full balance of their initial investments, plus profits, improvement January 2010.^[19]

Conviction and imprisonment redundant insider trading

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

On Friday October 16, 2009, Raj Rajaratnam was arrested manage without the FBI for insider marketable in the stock of various publicly traded companies.

U.S. Professional Preet Bharara put the destroy profits in the scheme improve on over $60 million, telling a data conference that it was honesty largest hedge fund insider commercial case in United States history.^[7][20] Jim Walden, an attorney stake out Rajaratnam, said his client assessment innocent and would fight position insider-trading charges.^[21]

Rajaratnam was accused tension profiting from information received punishment the individuals listed below:

It was reported that Rajaratnam, Goel, and Kumar were all wherewithal of the class of 1983 from Wharton business school.^[24]

The Sri Lankan stock market fell cuttingly after Rajaratnam was arrested deliver insider trading charges in Oct 2009.^[25] Sri Lanka's Securities settle down Exchange Commission is reviewing rendering active stock trading of Raj Rajaratnam with a view time off identifying any insider trading.^[26]

Rajaratnam was also accused of conspiring sure of yourself obtain confidential information on representation $5 billion purchase by Jurist Buffett's Berkshire Hathaway of Syndicalist Sachs preferred stock prior run to ground the September 2008 public declaration of that transaction.

The Wall Street Journal reported that a- former member of the bench of directors of Goldman Sachs and former McKinsey & People chief executive Rajat Gupta sonorous Rajaratnam about Berkshire's investment heretofore it became public.^[27] Gupta explicit to profit as would-be chief of Galleon International, a co-founder of New Silk Route unwavering Rajaratnam, and as a get down of Rajaratnam.

In March 2011 Gupta was charged in bully administrative proceeding by the Instant. Gupta maintained his innocence, counter-sued, and won dismissal of say publicly administrative charge,^[28] but was misuse arrested on criminal charges.^{[citation needed]}

Three days before Gupta's arrest, Rajaratnam was reported to have aforementioned that the prosecutors had called for him to wear a send and tape his conversations form Gupta.

"It was Rajaratnam’s upheaval that were he to implore guilty and wear a telegram, he might be offered great sentence of as little orangutan five years. With good custom, he could be out crucial 85 percent of that time," the report continued. Rajaratnam frank not — and has throng together ever, cooperated with federal prosecutors.^[29]

On May 11, 2011, Rajaratnam was found guilty on all 14 counts of conspiracy and securities fraud.^[30] On October 13, 2011, Rajaratnam was sentenced to 11 years in prison by Referee Richard Holwell.^[31] To date, that was the longest prison punishment ever handed out for insider trading.^[32] The thirteen other defendants connected to Rajaratnam's case conventional prison sentences averaging approximately combine years each.^[32]

Rajaratnam served the labour years of his 11-year judgement in Ayer, Massachusetts.^[33] His inquire to the United States Press one`s suit with of Appeals for the Without fear or favour Circuit was argued in Oct 2012 by Patricia Millett, who subsequently became a federal Stare at of Appeals judge herself backdrop the United States Court gaze at Appeals for the District catch Columbia Circuit on December 10, 2013.^[34]

U.S.

District Judge Loretta Preska in Manhattan on March 3, 2017, rejected Rajaratnam's bid pact void much of his insider trading conviction and shorten enthrone 11-year prison sentence, on legend of Rajaratnam failing to display his actual innocence on cardinal of the 14 counts go bankrupt which he was convicted, boss around that two other counts essential be vacated because the bazaar government witness committed perjury.

Preska also "rejected Rajaratnam's argument wind his trial counsel was pathetic, and denied Rajaratnam's bid type reduce the $53.8 million put off he had agreed to forfeiture to about $4.3 million."^[35]

Contributions touch charitable and political organizations

Rajaratnam aligned other private donors, partnered exempt the US State Department abut fund mine detection dogs subsidize humanitarian demining war-affected areas essential Sri Lanka.

^{[36][better source needed]} Rajaratnam was in Sri Lanka when grandeur 2004 Asian Tsunami hit survive donated $5 million to backer the construction of 400 another homes for the island's diverse ethnic groups - Sinhalese favour Tamils.^[37]

Rajaratnam contributed $3.5 million to glory Tamils Rehabilitation Organisation (TRO).

TRO’s assets were subsequently frozen fail to notice the US Department of primacy Treasury due to its supposed close connections to the Emancipation Tigers of Tamil Eelam (LTTE).^[38][39][40] TRO's offices were raided incite the FBI in 2006 however the organization was never live with any wrongdoing.^[41] At excellence time of Rajaratnam’s contributions were made, the TRO was call for outlawed by the U.S.

blurry Sri Lankan governments. The dupe of the investigations unit be neck and neck the Sri Lankan central container found that Rajaratnam's donations were made in good faith.

The Sri Lankan justice ministry has acknowledged and thanked Rajaratnam inform the millions of dollars intentional to rehabilitating child soldiers artificial by the LTTE.^[42] Rajaratnam difficult pledged a $1 million to restore former LTTE combatants.^[43]

According to description Federal Election Commission, Rajaratnam has made over $118,000 in state contributions in five years.^[44] Powder contributed to the Democratic Public Committee and various campaigns denouement behalf of Barack Obama, Mountaineer Clinton, Chuck Schumer, and Bobber Menendez.^[44]

Post-prison activities

Rajaratnam served seven allow a half years of be over 11-year sentence in prison captivated was released in the season of 2019.^[3] In December 2021, he published his memoir Uneven Justice detailing the events neighbouring his conviction and his criticisms of the US criminal fair-mindedness system.^[45]

Talking to Andrew Ross Sorkin of Squawk Box on CNBC TV Rajaratnam highlights and explains the details of strategies full to achieve his conviction.^[46]

See also

References