Rajaratnam to pay $1.45M to settle SEC civil suit

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Associated Press

Posted on December 27, 2012 at 5:01 PM

Updated Thursday, Dec 27 at 5:02 PM

NEW YORK (AP) — A hedge fund founder currently serving the longest prison term ever given for insider trading will also be writing the government a big check.

Raj Rajaratnam, 55, convicted last year of trading on inside information from 2003 through 2009, will pay nearly $1.45 million to settle a civil case brought by the Securities and Exchange Commission, according to court documents.

A federal judge approved the deal Thursday.

The settlement includes $1.29 million representing profits gained and losses avoided as a result of trading on tips from former Goldman Sachs Group Inc. director Rajat Gupta, who was convicted separately in June. It also includes $147,738 in prejudgment interest.

Sri Lanka-born Rajaratnam, founder of the Galleon Group of hedge funds, is serving 11 years at a Massachusetts federal prison, and has appealed.

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