Rajaratnam’s $93M SEC Insider Trading Fine Upheld (1)

Raj Rajaratnam is stuck with a $93 million civil fine for insider trading after the Second Circuit affirmed a district court ruling in favor of the SEC.

The former Galleon Group LLC head argued the civil penalty was unjust because the district judge improperly used the illicit profits Rajaratnam got his clients—not his personal gains—to calculate it. But a plain reading of the statute shows otherwise, the U.S. Court of Appeals for the Second Circuit said March 5.

Rajaratnam was sentenced to 11 years in prison and a $10 million fine after a federal jury convicted him of securities fraud ...