The brother of a jailed former hedge fund boss will be barred for at least five years from the securities industry and pay about $841,000 to settle a civil insider trading case against him.
The Securities and Exchange Commission announced the settlement Thursday with Rengan Rajaratnam. He was acquitted in July in a criminal trial of conspiring with his brother, one-time billionaire hedge fund boss Raj Rajaratnam, to cheat on Wall Street. The SEC filed related civil charges against Rengan Rajaratnam in March 2013.
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Raj Rajaratnam is serving an 11-year sentence In one of the biggest insider trading cases mounted by federal prosecutors. The government said he earned up to $75 million illegally by trading on secrets provided by corrupt employees of public companies.