Hedge founder gets 11 years in insider trade probe

Raj Rajaratnam

October 13, 2011 8:28:06 AM PDT
A hedge fund founder who was the primary target in a massive insider trading probe has been sentenced to 11 years in prison.

Galleon Group founder Raj Rajaratnam was sentenced Thursday in Manhattan federal court. He also was fined $10 million.

Judge Richard Holwell announced the sentence after concluding that Rajaratnam made well over $50 million in profits from his illegal trades.

The prosecution had placed Rajaratnam's profits from illegal trades between $70 million and $75 million.

The sentencing culminates a series of convictions and sentencings in what prosecutors called the largest hedge fund insider trading case in U.S. history.

Lawyers for Rajaratnam, a Sri Lanka native, had asked for leniency, citing his failing health. They said a lengthy prison term would amount to a death sentence.