Raj Rajaratnam agrees to pay $1.5 million in civil lawsuit

Raj Rajaratnam agrees to pay $1.5 million in civil lawsuit

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US hedge fund manager Raj Rajaratnam has agreed to pay disgorgement of about $1.5 million in a civil lawsuit filed by the Securities and Exchange Commission (SEC), and to waive his right to appeal the judgement, court papers showed.

Rajaratnam would make the payment, representing the profits obtained by unlawful means, to the SEC within 90 days after the entry of the final judgement in court records, according to a filing.

Rajaratnam, currently serving a 11-year prison term, was convicted of securities fraud and conspiracy in May 2011. He was accused of running a network of friends and associates who leaked corporate secrets to him for years.

Former Goldman Sachs Group Inc. director Rajat Gupta, a former chief of consulting firm McKinsey & Co., has also been charged with leaking tips to Rajaratnam. Gupta denies the charges.

Rajaratnam, the founder of Galleon Group, has already paid $63.8 million in criminal penalties, and a judge had earlier ordered him to pay $92.8 million in a civil case brought by the SEC.

The case is SEC vs Rajaratnam et al, U. District Court for the Southern District of New York, No. 11-07566.

Copyright: Thomson Reuters 2012

Story first published on: December 27, 2012 10:53 (IST)

Tags: Raj Rajaratnam, Rajat Gupta, Galleon Group

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