14 Oct 2011

Hedge fund manager jailed for insider trading

8:24 am on 14 October 2011

Raj Rajaratnam, 54, was found guilty earlier in the year of trading on illegal tips supplied by insiders at some of America's leading companies.

Sri Lankan-born Rajaratnam was convicted of 14 counts of securities fraud and conspiracy charges in May after a two-month trial.

The judge at the Manhattan federal court said the Galleon Group founder made well over $50m from illegal trades.

Rajaratnam was fined $US10 million.

The prosecution had requested he be handed nearly 20 years in prison, but the defence asked for nine years at most.

Among those also convicted in the Galleon case was Bear Stearns hedge-fund trader Danielle Chiesi, a former beauty queen.