Home / Front Page/ Lankan-born hedge fund manager Raj Rajaratnam released from US prison two years early

Lankan-born hedge fund manager Raj Rajaratnam released from US prison two years early

Comments / {{hitsCtrl.values.hits}} Views / Tuesday, 10 September 2019 01:50

Sri Lankan-born Galleon hedge fund founder Raj Rajaratnam, who was serving an 11-year prison term for insider trading, has been released more than six weeks ago, almost two years early, Bloomberg reported.

Raj Rajaratnam, alleged of being the mastermind of the largest hedge-fund insider-trading rings in US history, has been living with his family in Manhattan’s East Side since 23 July, according to the Federal Bureau of Prisons. 

He is mostly confined to his apartment for the remainder of his sentence, but is free to work outside his home during the day.

Rajaratnam, who managed the $ 7 billion Galleon Group hedge fund, was found guilty on 14 counts of security fraud and conspiracy in May 2011. In addition to the 11-year jail term, he was fined $ 10 million and ordered to forfeit $ 53.8 million.

After his 2011 conviction, he served his time at the Federal Medical Center Devens, a prison outside Boston.

Rajaratnam, 62, was released approximately two to three years early due to the 2018 First Step Act, which allows some federal inmates who are over 60-years-old, or who face terminal illnesses, to serve the end of their sentences at home. He will serve the remainder of his prison sentence at home, with some privileges to work outside of the household.

Rajaratnam is a Sri Lankan Tamil immigrated to the US in 1981. He was an old boy of S. Thomas’ College in Mount Lavinia. He founded the Galleon hedge fund group in 1997.

His Galleon Fund was one of Sri Lanka’s largest foreign investment funds and had large stakes in blue-chip companies. He was the single largest shareholder of conglomerate John Keells Holdings with 52.4 million shares.

Share This Article

Facebook Twitter


1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.


Today's Columnists

Economic growth through fragmentation and global value chain

Wednesday, 19 February 2020

The global value chain will continue to enhance economic growth, create better job opportunities and shrink poverty in developing countries. As far back as the 1990s, through international trade, global value chain benefits were experienced by poorer

Sri Lankan housewife in trouble again?

Wednesday, 19 February 2020

After almost six quarters of negative growth, starting from Quarter 1 2016, Sri Lanka saw overall general trading conditions recovering to register +4.1% GDP growth in Q1-2019 and +3.7% in Q2-2019 which was a welcome sign to a typical Sri Lanka hous

Their investigations and our investigations

Wednesday, 19 February 2020

There must be very few subjects in this country more investigated than the alleged wrongdoings in relation to Government issued bonds. Beginning with the so-called Pilipino committee (appointed by persons whose very conduct was germane to the inquir

Education and vocational training: lessons learnt from Singapore

Wednesday, 19 February 2020

In the 1960s, Lee Kuan Yew, the eminent leader and founding father of Singapore, once said that he wants to build Singapore as Sri Lanka. But what has happened today? Sri Lanka is lagging behind Singapore in many aspects. Singapore has no natural res

Columnists More