An article by Peter Lattman for the New York Times Dealbook reports on the massive penalty handed down to Galleon Group’s Raj Rajaratnam who was recently found guilty of insider trading:
A federal judge on Tuesday ordered the convicted hedge fund titan Raj Rajaratnam to pay a $92.8 million penalty, the largest ever assessed against a person in a Securities and Exchange Commission insider trading case. Combined with the fines and forfeitures ordered last month when he was sentenced to 11 years in prison for insider trading, Mr. Rajaratnam will be paying a total of $156.6 million.
“The penalty imposed today reflects the historic proportions of Raj Rajaratnam’s illegal conduct and its impact on the integrity of our markets,” said Robert S. Khuzami, the S.E.C.’s head of enforcement. Legal experts say the S.E.C. fine against Mr. Rajaratnam is noteworthy because in many cases judges will not impose such substantial civil penalties against a defendant who has already been sentenced and ordered to pay stiff criminal fines.