Rengan Rajaratnam, the brother of Raj Rajaratnam, who is in jail for insider trading, has been indicted for the similar allegations. He is accused of helping his brother use non-public material when trading two stocks in 2008. These insider tips and information helped Rengan make around $1.2 million, within a two day span. Raj is serving an 11-year prison term for conspiracy and securities fraud. This was a huge indictment for the US, the SEC, and the FBI - it is the biggest hedge fund executive to go to jail. Many people are angry that those accused for insider trading are only paying a (huge) fine and not usually sent to jail; this is a step in the right direction by having white collar criminals serve jail time.
Link: http://www.bloomberg.com/news/2013-03-21/raj-rajaratnam-s-brother-charged-with-insider-trading.html
1 comment:
I definitely agree that criminals like these need to serve jail time. Even with a huge fine, they were able to make over a million dollars in just two days. They deserve to have to pay it back (plus some) and serve time for their wrong doings. People in high-profile jobs should not be exempt from punishment for their crimes.
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