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29-406: The firm was founded by Ari Arjavalingam, Gary Rosenbach, Krishen Sud, and Raj Rajaratnam , a former equity research analyst and eventual president of Needham & Company , in 1997. The New York headquartered firm was named for the galleon , a large sailing ship used from the 16th to 18th centuries by European traders and explorers, especially from Spain . The rise and fall of Galleon has been

58-499: A hedge fund —the Needham Emerging Growth Partnership—in March 1992, which he later bought and renamed Galleon Group . His hedge fund was valued at $ 3.7 billion in 2009, down from a peak of $ 7 billion in 2008. According to a 2009 investor letter his $ 1.2 billion Diversified Fund had a net annualized return of 22.3 percent. Rajaratnam has been featured among the elite US money managers in

87-477: A portfolio manager at the hedge fund Chelsey Capital, and, prior, a trader at Morgan Stanley , was sentenced to three years' probation in January 2012, having provided vital assistance to the government as an FBI informant, since 2007. Testimony during the trial of illegal inside source Rajat Gupta revealed further detail of how insider trading was pervasive at Galleon. Leon Shaulov, a Senior Portfolio Manager who

116-407: A book called The New Investment Superstars. Initially, he primarily invested in technology and healthcare companies. He said that his best ideas came from frequent visits with the companies in which he invested and from conversations with executives who invested in his fund. After Rajaratnam's arrest, Galleon received requests from its investors for the withdrawal of $ 1.3 billion, which caused

145-477: A co-founder of New Silk Route with Rajaratnam, and as a friend of Rajaratnam. In March 2011 Gupta was charged in an administrative proceeding by the SEC . Gupta maintained his innocence, counter-sued, and won dismissal of the administrative charge, but was then arrested on criminal charges. On May 11, 2011, Rajaratnam was found guilty on all 14 counts of conspiracy and securities fraud. On October 13, 2011, Rajaratnam

174-524: A half years of an 11-year sentence in prison and was released in the summer of 2019. In December 2021, he published his memoir Uneven Justice detailing the events surrounding his conviction and his criticisms of the US criminal justice system. Talking to Andrew Ross Sorkin of Squawk Box on CNBC TV Rajaratnam highlights and explains the details of strategies employed to achieve his conviction. Uneven Justice Uneven Justice: The Plot to Sink Galleon

203-431: A lending officer at Chase Manhattan Bank where he specialized in business loans to technology companies. He joined the investment banking boutique Needham & Co. as an equity research analyst in 1985, where he focused on the consumer electronics and Technology sector. He rapidly rose through the ranks, becoming the head of research in 1987 and the president in 1991, at the age of 34. At the company's behest, he started

232-487: A lenient sentence and prosecutors had recommended more than 10 years. Adam Smith, a former Galleon trader, pleaded guilty and cooperated in the criminal trial of Raj Rajaratnam. He was sentenced in June 2012 to only a period of probation and no jail time by Judge Jed Rakoff , who took over the case from Judge Richard Holwell when the latter retired from the bench. David R. Slaine, a former Galleon trader, who had previously been

261-576: Is a memoir by Raj Rajaratnam , founder of the Galleon Group , a New York -based hedge fund management firm now ceased in operation; the book was first published in December, 2021 by Post Hill Press . Raj Rajaratnam served seven and half years in prison of an 11-year sentence after being convicted for insider trading and was released in the summer of 2019. In 2021, he published his memoir, Uneven Justice: The Plot to Sink Galleon , detailing

290-799: The Singer Sewing Machine Co. Sri Lanka in 1970 and the vice president in South Asia. and mother Rajeshwari, a homemaker. He attended S. Thomas' Preparatory School, Kollupitiya before his family migrated to England in 1971. He attended Dulwich College in London and later studied engineering at the University of Sussex , and then earned an M.B.A. from the Wharton School of the University of Pennsylvania in 1983. Rajaratnam started his career as

319-525: The $ 5 billion purchase by Warren Buffett 's Berkshire Hathaway of Goldman Sachs preferred stock prior to the September 2008 public announcement of that transaction. The Wall Street Journal reported that a former member of the board of directors of Goldman Sachs and former McKinsey & Company chief executive Rajat Gupta told Rajaratnam about Berkshire's investment before it became public. Gupta stood to profit as would-be chairman of Galleon International,

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348-633: The 14 counts on which he was convicted, or that two other counts should be vacated because the main government witness committed perjury. Preska also "rejected Rajaratnam's argument that his trial counsel was ineffective, and denied Rajaratnam's bid to reduce the $ 53.8 million that he had agreed to forfeit to about $ 4.3 million." Rajaratnam alongside other private donors, partnered with the US State Department to fund mine detection dogs for humanitarian demining war-affected areas in Sri Lanka. Rajaratnam

377-548: The FBI in 2006 but the organization was never charged with any wrongdoing. At the time of Rajaratnam’s contributions were made, the TRO was not outlawed by the U.S. nor Sri Lankan governments. The chief of the investigations unit at the Sri Lankan central bank found that Rajaratnam's donations were made in good faith. The Sri Lankan justice ministry has acknowledged and thanked Rajaratnam for

406-762: The Second Circuit was argued in October 2012 by Patricia Millett , who subsequently became a federal Court of Appeals judge herself on the United States Court of Appeals for the District of Columbia Circuit on December 10, 2013. U.S. District Judge Loretta Preska in Manhattan on March 3, 2017, rejected Rajaratnam's bid to void much of his insider trading conviction and shorten his 11-year prison sentence, on account of Rajaratnam failing to show his actual innocence on five of

435-400: The class of 1983 from Wharton business school. The Sri Lankan stock market fell sharply after Rajaratnam was arrested on insider trading charges in October 2009. Sri Lanka's Securities and Exchange Commission is reviewing the active stock trading of Raj Rajaratnam with a view of identifying any insider trading. Rajaratnam was also accused of conspiring to obtain confidential information on

464-468: The firm cooperated in the investigation. As of January 2012 over 50 people had been convicted or pleaded guilty in the sprawling probe stemming from Galleon (not all of them Galleon employees). Zvi Goffer, a former Galleon trader, was found guilty of all 14 counts of conspiracy and securities fraud against him and sentenced by Judge Sullivan "to 10 years in prison for his role in a scheme to trade on inside information provided by lawyers". Goffer had asked for

493-546: The fund to close. In a letter dated October 21, 2009, Rajaratnam informed his employees and investors that he intended to wind down all the funds of the Galleon Group. Investors received the full balance of their initial investments, plus profits, in January 2010. On Friday October 16, 2009, Raj Rajaratnam was arrested by the FBI for insider trading in the stock of several publicly traded companies. U.S. Attorney Preet Bharara put

522-518: The largest in United States history. He was indicted by a grand jury in December 2009 and found guilty in U.S. District Court on 14 charges in May 2011. He was sentenced by U.S. District Judge Richard Holwell to 11 years in prison on October 13, 2011. Other former and current traders at Galleon were subsequently arrested and charged with contributing to the alleged conspiracy. Several former employees of

551-561: The latest Forbes list of the 400 Richest Americans . On October 16, 2009, he was arrested by the FBI for insider trading , which also caused the Galleon Group to fold. He stood trial in U.S. v. Rajaratnam (09 Cr. 01184) 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. On October 13, 2011, Rajaratnam

580-682: The millions of dollars contributed to rehabilitating child soldiers conscripted by the LTTE. Rajaratnam had pledged a $ 1 million to rehabilitate former LTTE combatants. According to the Federal Election Commission , Rajaratnam has made over $ 118,000 in political contributions in five years. He contributed to the Democratic National Committee and various campaigns on behalf of Barack Obama , Hillary Clinton , Chuck Schumer , and Bob Menendez . Rajaratnam served seven and

609-406: The role he had played. Raj Rajaratnam Rajakumaran Rajaratnam (born June 15, 1957) is a Sri Lankan-American former hedge fund manager and founder of the Galleon Group , a New York -based hedge fund management firm. He is also the author of his memoir, Uneven Justice: The Plot to Sink Galleon . In 2008, Raj was listed as the 262nd richest man in the United States, according to

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638-675: The subject of a number of books including The Billionaire's Apprentice (by Anita Raghavan, a journalist with The Wall Street Journal ). While working for Needham & Company , Rajaratnam started a hedge fund at the company's request—the Needham Emerging Growth Partnership—in March 1992. He later bought and renamed it Galleon. The fund primarily invested in technology and healthcare companies and quickly increased in value, eventually peaking at $ 7 billion in 2008. In October 2009 Rajaratnam and five others were arrested and charged with multiple counts of fraud and insider trading . Rajaratnam pleaded not guilty and remained free on $ 100 million bail,

667-517: The summer of 2019. Rajaratnam being released after 7 1/2 years, published his memoir, Uneven Justice , detailing the events surrounding his insider trading conviction and the alleged prosecutorial overreach he claims took place. Rajaratnam is an ethnic Sri Lankan Tamil born in Colombo in what was then the Dominion of Ceylon (present-day Sri Lanka) to J. M. Rajaratnam , who was the chairman & CEO of

696-448: 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. Jim Walden, an attorney for Rajaratnam, said his client is innocent and would fight the insider-trading charges. Rajaratnam was accused of profiting from information received from the individuals listed below: It was reported that Rajaratnam, Goel, and Kumar were all part of

725-472: Was followed by public court hearings of 2 months (for Raj Rajarathnam) and immediately after Raj's conviction, of 1 month (for Rajat Gupta). This led to the fund's closure and its directors going to jail for 2 to 10 years. Rajat Gupta was convicted in 2012 for his role and served 2 years in jail. Rajarathnam served an 8 year sentence on his original 11-year prison sentence and was released in 2019. Anil Kumar pleaded guilty to all charges and confessed in court about

754-707: Was in Sri Lanka when the 2004 Asian Tsunami hit and donated $ 5 million to for the construction of 400 new homes for the island's various ethnic groups - Sinhalese and Tamils. Rajaratnam contributed $ 3.5 million to the Tamils Rehabilitation Organisation (TRO). TRO’s assets were subsequently frozen by the US Department of the Treasury due to its alleged close connections to the Liberation Tigers of Tamil Eelam (LTTE). TRO's offices were raided by

783-462: Was left out of one particular insider trading scheme, was livid when he found out – not because the company was breaking the law, but rather because he had been, sending internal emails complaining: "Thx for the heads up"; "Not one word from anyone. Thanks very much. All I get is sick dilution."; "What I give vs what I get back is disgusting." Shaulov went on to found Maplelane Capital. The SEC investigated Galleon for insider trading. This

812-482: Was sentenced to 11 years in prison and fined a criminal and civil penalty of over $ 150 million combined. Rajaratnam was incarcerated at Federal Medical Center, Devens in Ayer, Massachusetts , an administrative facility housing male offenders requiring specialized or long-term medical or mental health care. Rajaratnam was released to home confinement in his Upper East Side Manhattan apartment, located on Sutton Place , in

841-462: Was sentenced to 11 years in prison by Judge Richard Holwell. To date, this was the longest prison sentence ever handed out for insider trading. The thirteen other defendants connected to Rajaratnam's case received prison sentences averaging approximately three years each. Rajaratnam served the first years of his 11-year sentence in Ayer, Massachusetts. His appeal to the United States Court of Appeals for

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