Raj Rajaratnam is a Sri Lankan-American former hedge fund manager and founder of the Galleon Group, a New York based hedge fund management firm. On October 16, 2009, he was arrested by the FBI for insider trading, which also caused the Galleon Group to fold. Take a look below for 25 more strange and interesting facts about Raj Rajaratnam.
1. He stood trial in U.S. v Rajaratnam in the United States District Court for the Southern District of New York, and on May 11, 2011, was found guilty on all 14 counts of conspiracy and securities fraud.
2. On October 13, 2011, Rajaratnam was sentenced to 11 years in prison and fined a criminal and civil penalty of over $150 million combined.
3. As of February, 2018, Rajaratnam is incarcerated at Federal Medical Center, Devens in Ayer, Massachusetts, an administrative facility housing male offender requiring specialized or long-term medical or mental health care.
4. Rajaratnam’s release date is July 4, 2021.
5. He was born on June 15, 1957, in Colombo, Sri Lanka.
6. He earned an undergraduate degree in engineering at the University of Sussex in England in 1980, and a master’s in business administration from the University of Pennsylvania’s Wharton School in 1983.
7. Rajaratnam began his career in finance as a lending officer at Chase Manhattan Bank, where he made loans to high-tech companies.
8. He shifted his focus to investments in the electronics industry at banking boutique Needham & Co., where he started in 1985.
9. At Needham, he began a hedge fund that mainly invested in technology stocks.
10. He would later buy the fund, and rename it Galleon.
11. Rajaratnam quickly rose through the ranks, becoming head of research in 1987.
12. In 1991, by the age of 34, Rajaratnam was named president of Needham.
13. The technology boom of the 1990s put Rajaratnam on the fast track to success.
14. Galleon brought in massive returns, its main fund rising 93% in 1999. Rajaratnam developed a reputation as an aggressive buyer and seller with a robust personality.
15. He saw his personal fortune grow immensely and, in 2009, Forbes Magazine ranked him the 236th richest American, with an estimated net worth of $1.8 billion.
16. Rajaratnam is also believed to be the world’s richest Sri Lankan.
17. In November, 2009, Rajaratnam pledged to donate $1 million to help with the rehabilitation of the LTTE combatants.
18. He has donated generously to clear land mines in the war-affected areas in Sri Lanka. He recalled his visits to the mine-impacted areas of Sri Lanka and underscored the humanitarian toll that mines have taken.
19. According to the Federal Election Commission, Rajaratnam has made over $118,000 in political contributions in the past five years.
20. He has contributed to the Democratic National Committee and various campaigns on behalf of Barack Obama, Hillary Clinton, Charles Schumer and Robert Menendez.
21. On Friday, October 16, 2009, Rajaratnam was arrested by the FBI for insider trading in the stock of several publicly traded companies.
22. U.S. Attorney Preet Bharara put the total profits in the scheme at over $60 million, telling a news conference that it was the largest hedge fund insider trading case in United States history.
23. The Sri Lankan stock market fell sharply after Rajaratnam was arrested on insider trading charges in October, 2009.
24. Rajaratnam also conspired to get confidential information on the $5 billion purchase by Warren Buffet’s Berkshire Hathaway of Goldman preferred stock prior to the September, 2008, public announcement of that transaction.
25. Prosecutors said that Rajaratnam made up to $63.8 million from 2003 to 2009 through insider trading in stocks such as eBay, Goldman Sachs and Google.