Convicted hedge-fund titan Raj Rajaratnam will likely appeal the record penalty handed down by the Securities and Exchange Commission last week on civil insider trading charges, FOX Business Network has learned.
The penalty, imposed by Federal Judge Jed S. Rakoff, ordered Rajaratnam to pay the SEC a $92.8 million penalty, the largest ever levied in an insider trading case brought by the commission.
The Rajaratnam defense team will likely argue the amount is onerous based on its client’s actual net worth, which is far lower than the billionaire status reported in various media reports.
“Raj is worth nowhere close to $1 billion,” said one person with direct knowledge of the matter. “This will significantly impact him.” According to people close to Rajaratnam, much of his net worth was tied up in the now defunct Galleon Group hedge fund, which was disbanded in October 2009. That’s when Rajaratnam was arrested on criminal insider trading charges by the US Attorney’s office and the SEC filed civil charges against he and the firm....
Read more: http://www.foxbusiness.com/industries/2011/11/16/poor-raj/
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