US prosecutors want maximum prison sentence for Rajaratnam

New York, Aug 10: Seeking maximum prison term for Raj Rajaratnam, the hedge fund manager convicted of running America's biggest insider trading scam, US prosecutors have recommended that he should be sentenced to as many as 24 and a half years for his "extensive criminal activities".

Federal prosecutors yesterday filed a 56-page ''Government's Sentencing Memorandum'' recommending a "very substantial term of imprisonment proportionate to the historic nature of his crime."

Separately, the defence submitted its own 79-page memo asking for a lenient prison term "substantially below" the recommended guidelines saying a lengthy prison term would "seriously threaten his well-being" and would be "a death sentence."

The defence memo also referred to Rajaratnam''s health problems, describing them as "a unique constellation of ailments ravaging his body." Federal prosecutors termed Sri Lanka-born Rajaratnam, 54, as the "modern face of illegal insider trading" saying "he is arguably the most egregious violator of the laws against insider trading ever to be caught."

Their memo said the court should impose the maximum sentence of 235 to 293 months established for his crime under nonbinding sentencing guidelines, a ruling that will "deter others in the hedge fund and money management world from engaging in a crime that is far too rampant." The memo was submitted to Judge Richard Holwell, who is scheduled to sentence Rajaratnam on September 27.

PTI