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Raj Rajaratnam, a self-made hedge-fund tycoon convicted of fraud and conspiracy in the biggest Wall Street trading scandal in a generation, has been ordered to serve 11 years in prison, one of the longest sentences on record in an insider-trading case.
US District Judge Richard J Holwell announced the sentence in Manhattan on Thursday after concluding that Rajaratnam made well over $50m in profits from his illegal trades.
Rajaratnam's profits had been placed at between $70m and $75m by case prosecuters who had sought a prison sentence of at least 19-and-a-half years.
"His crimes and the scope of his crimes reflect a virus in our business culture that needs to be eradicated," Holwell said.
Holwell also ordered the Galleon Group founder to pay a $10m fine for his crimes.
Except that one thing you can do as a member is study pending legislation and regulatory changes, call up your broker and instruct him to trade on that nonpublic information. Do this as often as you want; you will suffer no penalty. There is no limit to how much money you can earn on insider trading in the House or Senate. Lawmakers and their staffers are specifically exempted.
As you might expect, those who work in the hallowed halls are not shy about availing themselves of the opportunity. A Wall Street Journal analysis published more than six months ago that has thus far provoked no particular sense of shame on Capitol Hill found that at least 72 Congressional aides in both parties had recently traded shares of companies that their bosses helped regulate.
Last week a study of some 16,000 stock transactions carried out by House members was published in the journal Business and Politics. This detailed analysis showed that the investment portfolios of House members beat the market by about six points a year. (Democrats did especially well, outperforming by some nine points a year, while Republicans topped the average investor by only two percent annually.) Senators apparently do even better: “their portfolios show some of the highest excess returns ever recorded over a long period of time, significantly outperforming even hedge fund managers,” noted the journal, citing a previously published study.
Originally posted by neo96
if you really want to see an eye opener find out how many congressman invested in all those green corporations
theres not a poor congressman they may start off less well off but by the end of their decades of "public service" and their pay and "benefits" they are living better than most of all those evil greedy corporatists and bankers.
wall street aint got nothing on united states congressman and most people love them for it.