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Raj Raj Gets 11 Years In Federal Prison

Tyler Durden's picture




 

While Angelo Mozilo is working on his tan and pretending he did not engage in blatant 10(b)-5 fraud for years and years. Oh well, justice is served.  Don't look for the Gerson Lehrman IPO any times soon.

  • RAJARATNAM GETS 132 MONTH PRISON TERM FOR INSIDER TRADING. - BBG

From Reuters:

Raj Rajaratnam, a self-made hedge fund tycoon convicted in the biggest Wall Street trading scandal in a generation, was ordered on Thursday to serve 11 years in prison, one of the longest sentences on record in an insider-trading case but less than prosecutors had sought.

 

Prosecutors had asked U.S. District Judge Richard Holwell in Manhattan to impose a sentence of at least 19-1/2 years on the Galleon Group founder, the central figure in a sweeping criminal case that touched some of America's top companies, including Goldman Sachs Group Inc, Intel Corp, IBM and the elite McKinsey & Co consultancy.

 

Defense lawyers had argued that Rajaratnam deserved a much shorter prison term, citing unspecified health problems and arguing that the government was pushing for a punishment more appropriate to a violent criminal.

 

Prosecutors have called Rajaratnam, 54, the "modern face" of insider trading, putting him in a dubious pantheon of Wall Street power players such as takeover specialist Ivan Boesky and junk bond financier Michael Milken, principal figures in a mid-1980s insider-trading case. Both men served about two years in prison.

 

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Thu, 10/13/2011 - 11:21 | 1769616 teknic
teknic's picture

They should have given him the 19-24 years.

 

Health issues my ass.

Thu, 10/13/2011 - 11:25 | 1769648 Pladizow
Pladizow's picture

So with good behavior he'll be out in 5-6 years?

Thu, 10/13/2011 - 11:28 | 1769661 slackrabbit
slackrabbit's picture

probably three after a letter from timmay saying he was doing gods work

Thu, 10/13/2011 - 11:32 | 1769681 gojam
gojam's picture

We're going to need more prisons.

Thu, 10/13/2011 - 11:39 | 1769726 onearmedlove
onearmedlove's picture

Actually if they stopped putting black people in jail for selling weed there would be lots of space.

Thu, 10/13/2011 - 12:03 | 1769839 Surly Bear
Surly Bear's picture

'Federal pound-me-in-the-ass prison'

Thu, 10/13/2011 - 12:48 | 1770021 ThisIsBob
ThisIsBob's picture

Speaking of which, How does our leqader expect to carry California without the queer and stoner vote?

Thu, 10/13/2011 - 12:54 | 1770038 goldfreak
goldfreak's picture

Did he not contribute to the right senator or something?

Let that be a lesson to you all for trying to disrespect (shortchange) our "elected" officials (gangsters)

Thu, 10/13/2011 - 14:42 | 1770488 Oh regional Indian
Oh regional Indian's picture

Actually, I see this as a really rayciss case. Raj was nowhere near the top of the foodchain, even with his billion or half. He was a wannabe.

The GWS (Great White Sharks) are still swimming free and will be, for some time to come. Lot's more minnows to  the Gallows yet. Raj was partially screwed by the colour of his skin. No doubt.

ORI

The Perversion of Language

Thu, 10/13/2011 - 12:17 | 1769893 fuu
fuu's picture

Amen to that.

Thu, 10/13/2011 - 13:35 | 1770158 zerozulu
zerozulu's picture

Legalize weed.

Thu, 10/13/2011 - 11:40 | 1769731 junkyardjack
junkyardjack's picture

And ballin' out of control

Thu, 10/13/2011 - 11:48 | 1769775 Don Birnam
Don Birnam's picture

Raj, next to a ready supply of cartons of Marlboro Reds, this will be your best friend on the inside:

http://1.bp.blogspot.com/_QjkYc8tyjdM/TSDPHnswCGI/AAAAAAAAAPc/u5Nf2HR4JX...

Thu, 10/13/2011 - 11:49 | 1769781 SRV - ES339
SRV - ES339's picture

Federal system... he serves it all, maybe 10% for GB but that's it!

Real question is where are the rest of them... you know, the crooks that really look like Wall Street bankers... Oh wait, I get it... it's the visible minorities that are the bad guys!

Off to join the Occupy Bay Street in Toronto this weekend... hope to see some ZH fans there!

Thu, 10/13/2011 - 13:45 | 1770198 smlbizman
smlbizman's picture

BUT SENATORS AND REPS ARE FREE TO INSIDE TRADE....BILL GROSS IS ALLOWED TO INSIDE TRADE...YOU ARE ALLOWED TO HAVE LOBBIEST LISTENING FOR INSIDE INFORMATION IN THE HALLS OF CONGRESS AND SELLING TO THEIR CLIENTS....ANYBODY THAT THINKS THIS GUY DESERVED WHAT HE GOT IS MISSING THE BIG PICTURE.....I WOULD THINK IF WE STARTED HANGING PEOPLE HE WOULD NOT EVEN MAKE THE LIST....

Thu, 10/13/2011 - 15:44 | 1770796 JayParamedic
JayParamedic's picture

I DON'T KNOW WHY WE'RE YELLING!!!!!

Thu, 10/13/2011 - 14:33 | 1770457 OffShorewHore
OffShorewHore's picture

Nah, he'll do 85% which means he will be out probably 9 years and some change.

Thu, 10/13/2011 - 14:34 | 1770461 dugorama
dugorama's picture

why do you pre-suppose good behaviour?

Thu, 10/13/2011 - 12:11 | 1769868 Freddie
Freddie's picture

Steve Cohen (SAC) and Cramer when he was a hedgie bottom feeder do the same things.  Raj should lose his citizenship and be deported after he gets out of the luxury fed prison he will be spending time in.

Thu, 10/13/2011 - 11:21 | 1769617 haskelslocal
haskelslocal's picture

Can the real tan guy please stand up. Please stand up. Please stand up.

Thu, 10/13/2011 - 11:22 | 1769618 thatthingcanfly
thatthingcanfly's picture

Maybe he can petition to serve part of that doing community service by cleaning windows at a 7-11.

Thu, 10/13/2011 - 11:22 | 1769630 tekhneek
tekhneek's picture

Someone please bend him over and fuck him with a sand paper condom using baby powder as lubricant.

Thanks.

Thu, 10/13/2011 - 11:48 | 1769774 Problem Is
Problem Is's picture

Your favorite way to take it, my dear?

Thu, 10/13/2011 - 11:59 | 1769822 tekhneek
tekhneek's picture

Wishful thinking I 'spose.

Thu, 10/13/2011 - 12:04 | 1769848 Yen Cross
Yen Cross's picture

 Ouch! Remind me to never incite your wrong "side"...

Thu, 10/13/2011 - 11:23 | 1769635 loveyajimbo
loveyajimbo's picture

Now he can work on his fat belly while his new pals work on his fat ass...  what is the CDS on his colon health?

Thu, 10/13/2011 - 11:32 | 1769676 slaughterer
slaughterer's picture

Now we finally have one convicted.  What about the others?

Thu, 10/13/2011 - 12:46 | 1770009 Sancho Ponzi
Sancho Ponzi's picture

I won't be satisfied until Vikram Pandit, 'God's work' Blankfein and Jamie Dimon are his shower buddies.

Thu, 10/13/2011 - 11:23 | 1769637 falak pema
falak pema's picture

One good thing about this discplinary decision is that raj raj will lose weight! 

Thu, 10/13/2011 - 11:24 | 1769642 Tense INDIAN
Tense INDIAN's picture

isnt that too harsh....thats like a murder sentence

Thu, 10/13/2011 - 12:09 | 1769864 johnQpublic
johnQpublic's picture

isnt it somewhat of a death sentence when you rob people of the future wealth forcing them into poverty and how about commodities manipulation that drives up the price of food for the poor worldwide causing starvation and death?

 

besides, you know damn well he'll walk early or get some sorta presidential pardon

Thu, 10/13/2011 - 11:24 | 1769643 PicassoInActions
PicassoInActions's picture

he probably was involved in latest Iran plot... 

Thu, 10/13/2011 - 11:24 | 1769645 treemagnet
treemagnet's picture

You gotta know the right people and make sure they're happy with their cut before you start this kind of shit.  Oh, and make sure you can pin it on some intern....

Thu, 10/13/2011 - 11:27 | 1769650 PulauHantu29
PulauHantu29's picture

Yes, it's much easier to go after some foreigner (or at least looks alien) then a home grown financial fraudster on Wall Street.

What's next?

You'll try to tell me some Mexican drug cartle pawn tried to assassinate an Arab King?

....how gullible do you think I am?

Thu, 10/13/2011 - 11:29 | 1769667 disabledvet
disabledvet's picture

Did you know the word "gullible" isn't in the dictionary?

Thu, 10/13/2011 - 11:32 | 1769680 PulauHantu29
PulauHantu29's picture

gullible. Also found in: Legal, Encyclopedia, Wikipedia, 0.01 sec. gul·li·ble (g l -b l ). adj. Easily deceived or duped. [From gull.] gul li·bil i·ty n. gul li·bly adv. gullible ...

 

http://www.thefreedictionary.com/gullible

Thu, 10/13/2011 - 12:03 | 1769836 HelluvaEngineer
HelluvaEngineer's picture

Is "sense of humor" in there?

Thu, 10/13/2011 - 11:31 | 1769670 disabledvet
disabledvet's picture

?

Thu, 10/13/2011 - 11:34 | 1769694 gmrpeabody
gmrpeabody's picture

What about doublepost?

Thu, 10/13/2011 - 11:41 | 1769734 knukles
knukles's picture

What about it?

Thu, 10/13/2011 - 11:42 | 1769740 knukles
knukles's picture

What about it?

Thu, 10/13/2011 - 11:46 | 1769762 Problem Is
Problem Is's picture

Fuckin' Funny...

Thu, 10/13/2011 - 11:46 | 1769765 Problem Is
Problem Is's picture

Fuckin' Funny...

Thu, 10/13/2011 - 11:27 | 1769655 AGuy
AGuy's picture

Unlike Mozilo, Raj failed to pay off the right politicians.

Thu, 10/13/2011 - 11:32 | 1769675 NotApplicable
NotApplicable's picture

Yes, I take it he's not in the club.

Thu, 10/13/2011 - 12:26 | 1769931 spanish inquisition
spanish inquisition's picture

Not enough money to buy freedom in this case. A message needed to be sent to all the dark skinned foreigners from Wall Street. Don't take jobs from white male criminals or they will make you pay. Sure, work around the margins so Wall Street can say "Hey, we are integrated!" or "There is a woman around here too somewhere, you must of just missed her!" Raj's problem was he did the work of 5-6 white male inside traders at a fraction of the cost. You know how cranky Streeters get when bonuses are short. 11 year sentence= (avg prev sentences) 2 years x (displaced indigenous insider traders, 5-6) 5.5. And he will bend over and take it, because if he causes a fuss, he will be tied to aiding terrorists and a drone will be sent to his home town.

Thu, 10/13/2011 - 13:28 | 1770136 zerozulu
zerozulu's picture

Hindooos and Jeoos don't know how to give. They only know how to take.

Thu, 10/13/2011 - 11:29 | 1769668 vegas
vegas's picture

This is nothing short of a travesty of justice. Typical of what passes in the US for a 'pound of flesh"

Meanwhile as TD notes, Mozillo, Bawny Fwank, Dodd, et al get a complete pass on the biggest fraud in the history of the world.

Hell, nobody can even give a legal definition of "insider trading". But don't worry, the kleptocrats at the SEC are busy protecting the public 24/7/365 while surfing for porn 8 hours a day. Sorry to see you get your nuts busted Raj.

Thu, 10/13/2011 - 11:34 | 1769692 Lets_Eat_Ben
Lets_Eat_Ben's picture

I wonder if Barney Frank will become more intelligible once his tongue is cut out...

Thu, 10/13/2011 - 11:32 | 1769678 YesWeKahn
YesWeKahn's picture

Hey, he was just a small fish. There are still sharks out there.

Thu, 10/13/2011 - 11:33 | 1769684 Peter K
Peter K's picture

I don't believe he did it. He looks like such a nice young man :)

Thu, 10/13/2011 - 11:34 | 1769689 Yen Cross
Yen Cross's picture

 It's just the beginning!

Thu, 10/13/2011 - 11:43 | 1769749 lizzy36
lizzy36's picture

We've only just begun to live
White lace and promises
A kiss for luck and we're on our way
We've only begun

#lmao

Thu, 10/13/2011 - 11:34 | 1769690 curbyourrisk
curbyourrisk's picture

He is small potatoes compared to the likes of Dick Fuld, Jamie Dimon and Lloyd Blankfien.  When will we see their PERP walks?

 

NEVER.....no way this administratin ever does the right thing.

Thu, 10/13/2011 - 11:50 | 1769788 defn8Dog
defn8Dog's picture

How about Blankfein walking over and shaking hands with Raj during the trial?  Not sure if there's a video capturing that special moment, but here's the artist rendering.  http://in.reuters.com/article/2011/03/24/idINIndia-55830820110324

Thu, 10/13/2011 - 11:36 | 1769707 RobotTrader
RobotTrader's picture

He'll be out in 3 years on good behavior and start up another hedge fund.

Like other Wall St. failures, he'll have no problem raising billions.

Thu, 10/13/2011 - 11:44 | 1769752 PicassoInActions
PicassoInActions's picture

his good behavier will be determine by few pedophiles in the same cell.

Thu, 10/13/2011 - 11:53 | 1769801 SRV - ES339
SRV - ES339's picture

Fed charges, so no GB Robo... he'll do at least 10 if he lasts that long

Thu, 10/13/2011 - 12:48 | 1770017 Sancho Ponzi
Sancho Ponzi's picture

That's not how the federal prison works. You serve the time, period.

Thu, 10/13/2011 - 14:39 | 1770475 OffShorewHore
OffShorewHore's picture

Nah, he'll do 'bout 9 years and some change with half way house and all that other Fed rehabilitation bull sh..t

 

Thu, 10/13/2011 - 11:37 | 1769711 Caviar Emptor
Caviar Emptor's picture

Poor Raj. He should tell them 'look this ain't the 1980s' when inside traders did hard time (Milken). This is the new era 

Thu, 10/13/2011 - 11:37 | 1769712 azzhatter
azzhatter's picture

Dammit, I was hoping for 212 months. Hope he brings the KY

Thu, 10/13/2011 - 11:43 | 1769751 Problem Is
Problem Is's picture

I had my money on 144 months in the Raj-O-Jail-Pool...

Thu, 10/13/2011 - 11:38 | 1769718 Parth
Parth's picture

This will almost encourage insider trading.

Thu, 10/13/2011 - 11:40 | 1769732 lizzy36
lizzy36's picture

Raj apparently needs transplant surgery (and no liposuction is not transplant surgery).

He wants to go home Sri Lanka to get (read BUY) his kidney transplant.

That type 2 diabetes is a bitch. Of course just the unintended consequences of being 200 lbs overweight.

Of course this is a political sentence. They mine as well just admit that they were completely impotent in prosecuting anyone that actually matters, so they got the brown dude on insider trading charges.

Joe Cassano enjoying another sunny day in London, while counting his hundreds of million of dollars, and AIG still in hock to US takpayers for about $130B.

#powertothepeople

Thu, 10/13/2011 - 11:46 | 1769761 knukles
knukles's picture

"If you're brown, you go down"
"If you're brown, we bomb your town"

etc.

Anybody else see the Irony in that what with our egalitarian leadership these days?

Thu, 10/13/2011 - 12:21 | 1769908 Yen Cross
Yen Cross's picture

Lizzy you are priceless. Thank GOD, I never under/estimated you.

Thu, 10/13/2011 - 11:40 | 1769733 Problem Is
Problem Is's picture

Throw The Indian Guy Under The Bus
There... Wall Street is all cleaned up...

Time to look forward instead of backwards...

Thu, 10/13/2011 - 11:45 | 1769760 PicassoInActions
PicassoInActions's picture

It tooks so long to process, i bet he build his own jail with nice view ...

Thu, 10/13/2011 - 11:46 | 1769764 onearmedlove
onearmedlove's picture

Conrad Black on his prison time.

http://www2.macleans.ca/2011/09/12/on-scrubbing-showers-navigating-the-prison-economy-and-getting-used-to-sleeping-alone/

 

 

Q: Is that what [food]  you spent your stamps on? 

A: No, we had—to use Lenin’s phrase—a division of labour: I would do some things for some of the inmates, and in return they would do some things for me, and there were better cooks in that place than I am.

Thu, 10/13/2011 - 11:47 | 1769771 Ned Zeppelin
Ned Zeppelin's picture

sacrificial small fish

Thu, 10/13/2011 - 11:49 | 1769780 monopoly
monopoly's picture

Mozilo makes John Thain and Blankfein almost appear to be human beings. They will all rot in Hell. Disgusting that these parasites are all still walking the streets.

Thu, 10/13/2011 - 12:51 | 1770032 Bam_Man
Bam_Man's picture

Mozilo makes John Thain and Blankfein almost appear to be human beings.

And that is quite a feat.

Thu, 10/13/2011 - 11:49 | 1769782 riphowardkatz
riphowardkatz's picture

He will be a hit in prison with moves like this.

http://www.youtube.com/watch?v=DQNFtmqtxRY 

Thu, 10/13/2011 - 11:50 | 1769785 Schmuck Raker
Schmuck Raker's picture

"132 MONTH PRISON TERM" - "on five counts of conspiracy and nine counts of securities fraud."

 

That's less than 10 months/crime. Poor little rich boy.

Thu, 10/13/2011 - 11:50 | 1769786 nedwardkelly
nedwardkelly's picture

11 years is ridiculous. It's not just the magnitude of a penalty that discourages people (within reason), it's the likelihood of getting caught.

Think of it like this...

Deterance factor = probability of getting caught X severity of punishment

So in this case, lets say an 11 year sentence for a 56 year old is about a 6 on the severity scale (10 being death, 1 being a trivial fine). Probability of getting caught is still what... 1 in 1000? How many other people are out there blantantly cheating the financial system? 10,000? Let's be conservative, saying the probaility is 0.001

So we've got

Deterance factor = 0.001 * 6 = 0.006

Or, we could have something like:

1 year in jail for insider trading (that's like a 4 on the severity scale*), but actually police, charge and prosecute people for it!!! If the probability of being caught is significantly higher, lets say 0.8, then you get:

Deterance factor = 0.8 * 4 = 3.2

Yes these are completely bullshit made up numbers, but the point is that if it's still completely unlikely that you will get caught for it, then it doesn't really matter how 'severe' the sentence is in deterring others from teh same crime. On the other hand, you could significantly reduce the penalty, if it was much more likely someone would be caught.

How many people would be willing to risk a year in prison if it was extremely likely they'd get caught? As it stands, it's pretty damn unlikely (look at all the convictions!!!!) so people risk it.

 

Thu, 10/13/2011 - 11:55 | 1769806 LFMayor
LFMayor's picture

He needs to take a copy of that 3000 year old fuckbook with him, the Kama Sutra.  And some Tucks medicated pads.

Thu, 10/13/2011 - 11:56 | 1769809 PicassoInActions
PicassoInActions's picture

the sentence was not only for him, it was for others too notice... and i bet if they would shot the guys, others would think twice before doing something wrong.

Thu, 10/13/2011 - 12:01 | 1769831 Joeman34
Joeman34's picture

Does he get to keep his cash?  Haven't heard anything about monetary penalties...

Thu, 10/13/2011 - 15:00 | 1770550 lins216
lins216's picture

"The judge also fined him $10 million and ordered him to forfeit $53.8 million, which Holwell said approximated the illegal profits and avoided losses from the trading scheme."

Thu, 10/13/2011 - 12:04 | 1769849 SRV - ES339
SRV - ES339's picture

As mentioned above, we have an "Occupy" this weekend in TO. Looking for something short and sweet for a sign and thought I'd throw it out there for ZH feedback... so far I've got a Gretzky sweater for the 99%er angle, and just a simple GREED KILLS (maybe dripping in blood) for a sign, but I'm sure someone out there could do better...

Thanks in advance for the suggestions... and no I will not stay there and never return, sorry... lol!

Thu, 10/13/2011 - 12:24 | 1769921 fuu
fuu's picture

How about:

Morals > Money

Thu, 10/13/2011 - 12:07 | 1769851 Zola
Zola's picture

@nedwardkelly   Very good point- also a ridiculous thing is that the SEC never actually investigates really suspect market behaviour where informed people like on ZH can easily see or suspect foul play. The guys live in stone age bureaucracy. Hell it would be 100x better than the SEC to have a privately funded agency by contributions from investors to police the market and investigate suspected fraud. Think Markopoulous partners. I know i would probably contribute to such a company if they bring on legal actions against all the crooks. 

Thu, 10/13/2011 - 12:13 | 1769875 tallen
tallen's picture

Let just hope it's a Federal-Pound-Me-In-The-Ass-Prison.

 

1 down, millions to go....

Thu, 10/13/2011 - 12:20 | 1769902 fuu
fuu's picture

Good start.

Thu, 10/13/2011 - 12:42 | 1769978 NuYawkFrankie
NuYawkFrankie's picture

.

Thu, 10/13/2011 - 12:44 | 1769979 NuYawkFrankie
NuYawkFrankie's picture

.

Thu, 10/13/2011 - 13:57 | 1769980 NuYawkFrankie
NuYawkFrankie's picture

 

 

An hedge-fund honcho named Raj

Had a backside as big as a barge,

His cell-mate named "Honey"

Claimed he'd make loadsa money

Should he rent it out as a "garage"

 

Thu, 10/13/2011 - 13:20 | 1770116 zerozulu
zerozulu's picture

We are suffering because our fathers and grandfathers let the Jews enter this country. Our sons and grandsons will suffer because we let the Indians get in this country.

Thu, 10/13/2011 - 13:21 | 1770119 Zymurguy
Zymurguy's picture

All the while insider trading is perfectly legal for those elected to congress.

Thu, 10/13/2011 - 13:34 | 1770153 The Big Ching-aso
The Big Ching-aso's picture

The Indian version of Martha Stewart.      

Thu, 10/13/2011 - 14:46 | 1770501 OffShorewHore
OffShorewHore's picture

Raj is my dude, no matter what, he is just one of the many who actually got stupid, too greedy and got caught.

He should have been out the game along time ago.

And as for the snitch ass bitchez that rat him out, i'd say to hell with all rat bastards.  Do the time if you do the crime. 

 

Thu, 10/13/2011 - 15:11 | 1770600 MelvilleSaysNo
MelvilleSaysNo's picture

If this guy was a yid, he wouldn't be doing time.

Thu, 10/13/2011 - 15:42 | 1770783 JayParamedic
JayParamedic's picture

Like a 'federal pound-me-in-the-ass' prison?

Thu, 10/13/2011 - 15:45 | 1770806 Debtless
Debtless's picture

Fuck 'em.

Thu, 10/13/2011 - 15:50 | 1770825 slvrizgold
slvrizgold's picture

Milken and Boesky only served 2 years because they're Jews.   But Raj is a brown Goy.   Big difference in USSA and the Bolshevik/Fascist courts.

 

Tue, 12/27/2011 - 20:07 | 2015033 oleander garch
oleander garch's picture

 

Raj Rajaratnam is the only corrupt Wall Streeter who has gone to prison since the financial crisis in 2008... and not because he scammed his clients but because he scammed Warren Buffet and Goldman Sachs!  http://www.thenakedemperor.com/oligarch/raj-rajaratnam

 

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