NEW YORK (AP) — A New York hedge fund founder serving the longest prison term ever given for insider trading also will be writing the government a big check.
Court documents show Raj Rajaratnam (rahj rah-juh-RUHT'-nuhm) will pay nearly $1.45 million to settle a civil case brought by the Securities and Exchange Commission. A federal judge approved the deal Thursday.
The documents say the settlement includes $1.29 million representing "profits gained and losses avoided" as a result of trading on tips from a former Goldman Sachs Group Inc. director convicted separately in June. The settlement also includes $148,000 in prejudgment interest.
The Sri Lanka-born Rajaratnam founded the Galleon Group of hedge funds. The 55-year-old was convicted last year of trading on inside information. He's serving 11 years at a Massachusetts federal prison and has appealed.