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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teknic's picture

They should have given him the 19-24 years.

 

Health issues my ass.

Pladizow's picture

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

slackrabbit's picture

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

gojam's picture

We're going to need more prisons.

onearmedlove's picture

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

Surly Bear's picture

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

ThisIsBob's picture

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

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)

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

zerozulu's picture

Legalize weed.

junkyardjack's picture

And ballin' out of control

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...

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!

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....

JayParamedic's picture

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

OffShorewHore's picture

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

dugorama's picture

why do you pre-suppose good behaviour?

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.

haskelslocal's picture

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

thatthingcanfly's picture

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

tekhneek's picture

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

Thanks.

Problem Is's picture

Your favorite way to take it, my dear?

tekhneek's picture

Wishful thinking I 'spose.

Yen Cross's picture

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

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?

slaughterer's picture

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

Sancho Ponzi's picture

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

falak pema's picture

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

Tense INDIAN's picture

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

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

PicassoInActions's picture

he probably was involved in latest Iran plot... 

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....

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?

disabledvet's picture

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

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

AGuy's picture

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

NotApplicable's picture

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

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.

zerozulu's picture

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

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.

Lets_Eat_Ben's picture

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

YesWeKahn's picture

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