Galleon Group’s Raj Rajaratnam, potentially facing almost two decades in prison, will have an “uphill struggle” in seeking to overturn his conviction in the biggest insider-trading trial since the 1980s, a former prosecutor says.
The hedge fund co-founder will appeal Wednesday’s verdict to the U.S. Court of Appeals in Manhattan, according to his attorney, John Dowd. Dowd failed to convince the judge last year that prosecutors had intentionally misled the court in their request to wiretap Rajaratnam’s calls.
“It’s an uphill struggle, there’s no question about it,” said Stephen Miller, a former federal prosecutor. “It’s always hard, once you have a judge making credibility findings of any sort for the appellate court to review it, especially in a case of this magnitude.”
Rajaratnam, 53, was found guilty of five counts of conspiracy and nine counts of securities fraud on the jury’s 12th day of deliberations. The jurors returned the verdict after hearing evidence that Rajaratnam engaged in a seven-year conspiracy to trade on inside information from corporate executives, bankers, consultants, traders and directors of public companies, including Goldman Sachs. He gained $63.8 million, prosecutors said.
Prosecutors said Rajaratnam faces a prison term of 15 1/2 to 19 1/2 years when he is sentenced July 29. Rajaratnam remains under home detention and electronic monitoring at his Sutton Place residence in Manhattan pending sentencing. Assistant U.S. Attorney Jonathan Streeter argued unsuccessfully to have Rajaratnam, who is free on a $100 million bond, taken into custody after the verdict.
