Big Raj and Bernie, Friends Forever: Rajaratnam Receives Record Prison Sentence for Insider Trading, Reportedly Sent to Madoff’s Pen

Raj Raj Galleon Group

Photographer: Peter Foley/Bloomberg via Getty.

Raj Rajaratnam is likely in the market for some new “inside” tips about now: how he’s going to survive eleven years in prison, the sentence for the $64M worth of insider trading he was recently found guilty for that was handed down today. UPDATED: It’s being suggested that Raj is going to the same prison as Bernie Madoff, The Federal Correctional Complex in Butner, N.C.

Tip #1: The South Asian Mafia doesn’t have the stronghold in the pen one in his position might hope for.

The former Galleon Group chief used tipsters from the likes of I.B.M. and Intel to pick up big gains. Peter Lattman at Dealbook noted that the sentence was lighter than prosecutors had hoped for (19 to 24 years) but that it continues in a trend of harsher sentences for white collar crimes (even though “the average sentence of the 13 other defendants connected to Mr. Rajaratnam’s case has been about three years“). He also got a $10M fine—again, for $64M worth of manipulating markets, and if that sounds like a $54M difference, it is—but whatever. The guy’s got larger problems at the moment. Like whoever his cell-mate’s going to be.

Other reactions from around the web:

One primer on how Raj may have recieved a harsher sentence for being defiant to a testosterone-loaded government hellbent on winning: “If Rajaratnam’s sentence is enhanced because he refused to surrender his judgment, a man who has been accused of corrupting others to gain stock tips will be sentenced, in part, for showing that the government has failed to corrupt him.”

Twitter: “Racism rearing its ugly head.”

Also: “Madoff’s pissed.”

And finally: “Gordon Gecko SMH*.”

*”Shaking my head.”

UPDATE: We’re now reading via Joe Wiesenthal at Business Insider that Rajaratnam is being sent to the same prison as Bernie Madoff. It’s also known as the same prison Bernie Madoff was beaten in.

fkamer@observer.com | @weareyourfek

 

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