NEW YORK, November 8, 2011 (AFP) – Disgraced hedge fund manager Raj Rajaratnam, already sentenced to prison for 11 years, was ordered Tuesday to pay almost $93 million dollars as part of an insider trading case brought by financial regulators.
A New York federal judge ordered Rajaratnam to pay the $92.8 million in a case brought by the Securities and Exchange Commission, which stemmed from the same charges in the criminal case.
This was “the largest penalty ever assessed against an individual in an SEC insider trading case,” the SEC said in a statement.
Rajaratnam was accused by the SEC of massive insider trading, with various schemes cumulatively generating more than $52 million in illicit gains.
“The penalty imposed today reflects the historic proportions of Raj Rajaratnam’s illegal conduct and its impact on the integrity of our markets,” said Robert Khuzami, Director of the SEC’s Division of Enforcement.
In October, Rajaratnam was sentenced to 11 years prison in a separate criminal case. The court also ordered him to pay a fine of $10 million and restitution of $53.8 million.
But the judge in that sentencing refused the prosecution’s request that the former trader be sentenced to as much as 24 years in prison, ci