Rajaratnam Ordered to Pay $92.8M in SEC Case

FBN’s Adam Shapiro on Galleon Group Founder Raj Rajaratnam ordered to pay $92.8 million as a penalty for insider trading.

A federal judge ordered Raj Rajaratnam, the Galleon Group hedge fund founder convicted of insider trading, to pay a $92.8 million penalty in a related civil case brought by the U.S. Securities and Exchange Commission.

The penalty was imposed by U.S. District Judge Jed Rakoff in Manhattan.

Rajaratnam was convicted in May of 14 counts of securities fraud and conspiracy in a separate criminal case. Rakoff's colleague, U.S. District Judge Richard Holwell, sentenced Rajaratnam last month to an 11-year prison term.