Conviction of billionaire Raj Rajaratnam, in the biggest US insider trading case, is a "wake up call" for those who intend to pursue profit through "corrupt" means, New York's top federal prosecutor has said.
Preet Bharara, the US Attorney for the Southern District of New York, said Rajaratnam stood at the summit of Wall Street two years ago, commanding his own financial empire but his conviction later on insider trading charges exposed a "web of fraud and corruption that entangled many."
Rajaratnam's case is a "sad conclusion" to what once seemed to be a glittering story, Bharara said.
This sentencing would be a "wake-up call", said the Attorney.
"Privileged professionals do not get a free pass to pursue profit through corrupt means. The message is the same for everyone, no matter who you are or how much money you have, obey the law or face the fate of those who don't."
The hedge fund billionaire, who made about $50 million over six years of illegal insider trading, was sentenced to 11
years in prison yesterday, the longest sentence to be imposed for insider trading in history.
The Sri Lankan born Galleon Group chief would also serve two years of supervised release and has been ordered to pay over $53 million as forfeiture in addition to a $10 million fine.
He will surrender to authorities on November 28, 2011.
Convicted on May 11, 2011 of all 14 counts of conspiracy and securities fraud with which he was charged, Rajaratnam was sentenced by US District Judge Richard Holwell, who said insider trading "is an assault on our free markets."
"The crimes and scope of the crimes (committed by Rajaratnam) reflect a virus in our business culture that needs to be eradicated," the judge said.
FBI assistant director in charge Janice Fedarcyk said Rajaratnam is no different from a host of others who "falsely attributed impressive investment results to superior research and acumen."
His considerable fortune was built on a clandestine network of corruption and concealment, Fedarcyk said adding that Rajaratnam is paying the price for not merely bending the rules but also for breaking the law.
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Preet Bharara, the US Attorney for the Southern District of New York, said Rajaratnam stood at the summit of Wall Street two years ago, commanding his own financial empire but his conviction later on insider trading charges exposed a "web of fraud and corruption that entangled many."