Rajaratnam agrees to return $1.5 mn in insider-trading case

US hedge fund manager Raj Rajaratnam has agreed to pay disgorgement of about $1.5 million in a civil lawsuit filed by the Securities and Exchange Commission, and to waive his right to appeal the judgment, court papers showed.

Rajaratnam would make the payment, representing the profits obtained by unlawful means, to the SEC within 90 days after the entry of the final judgment in court records, according to a filing.

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Rajaratnam, the founder of Galleon Group, has already paid $63.8 million in criminal penalties. Reuters

Rajaratnam, currently serving a 11-year prison term, was convicted of securities fraud and conspiracy in May 2011. He was accused of running a network of friends and associates who leaked corporate secrets to him for years.

Former Goldman Sachs director Rajat Gupta, a former chief of consulting firm McKinsey & Co, has also been charged with leaking tips to Rajaratnam. Gupta denies the charges.

Rajaratnam, the founder of Galleon Group, has already paid $63.8 million in criminal penalties, and a judge had earlier ordered him to pay $92.8 million in a civil case brought by the SEC.

The case is SEC vs Rajaratnam et al, US District Court for the Southern District of New York, No. 11-07566.

Reuters

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Updated Date: Dec 20, 2014 15:27:11 IST