Friday, October 14, 2011

Rajaratnam’s Sentence Brings Closure to the Galleon Scandal

NEW YORK, NY - APRIL 12:  Billionaire Galleon ...Image by Getty Images via @daylifeRaj Rajaratnam, who was convicted last May on charges of securities fraud and conspiracy, was sentenced on Thursday to 11 years in prison and a fine of $10 million dollars.

Rajaratnam led what has been described as the largest insider trading ring ever, building a network of high-ranking experts in key technology and consulting firms. It is estimated that he gained about $64 million from his actions.

With a motive that appears to have been pure greed, Rajaratnam used personal relationships to broaden his web. Many of his co-conspirators have been convicted and are serving or have served jail sentences. Danielle Chiesi, the femme fatale who excelled at luring secrets from her companions was sentenced to 30 months. Bob Moffat, formerly of IBM, was sentenced to six months in prison.

Eleven years in prison is a record sentence for an insider trading conviction. Nevertheless, at a time when Main Street employees (and the unemployed) are occupying Wall Street, the sentence seems to be too light. I’ll be the first to argue that not all Wall Street employees are corrupt – in fact, I believe most aren’t. But the few – like Rajaratnam – who profited big time from illegal activities, deserve to be treated like the criminals they are. What do you think?

2 comments:

Kenneth H. Lee said...

Run the #$^%#$%^s out of town. It seems as if society is slipping back into the days of the rail barons and robber barons. The rich get richer and the poor get poorer and the middle class is disappearing.

The agencies tasked to keep an out eye for "problems" are part of the problem. Too many insiders looking the other way.

The fox is watching the hen house.

Dave E said...

Nothing has changed at all in the last couple of years. The big institutions are still grabbing whatever they can, screw the ordinary guy. The banks are well, just being the banks! $5 charge to use your debit card to use your OWN money than you BofA. Execs are still paying themselves millions whilst the rest get laid off and jobs go overseas.
Fine,so they got one and sent him to jail. In the big picture, so what. I don't see any evidence of anything really changing as a result of this.