Galleon Group LLC

On 16 October 2009 the SEC charged Galleon Management and its founder Raj Rajaratnam with insider trading it said generated more than US$25 million in illicit gains^S1^S2. A federal jury convicted Rajaratnam on all 14 counts on 11 May 2011, and he was sentenced on 13 October 2011 to 11 years, a US$10 million fine and forfeiture of US$53,816,434^S3. On 8 November 2011 a civil judgment imposed a US$92.8 million penalty^S4. The Second Circuit affirmed the conviction on 24 June 2013^S5. Rajaratnam was released to home confinement in the summer of 2019^S6.

Also known as: Galleon Management, LP, Galleon Management, LLC, Galleon
Headquarters: United States
Records from: United States
Current status: Galleon Group LLC began liquidating its hedge funds in October 2009 after its founder was charged, and it planned to return investor money by early 2010^S7. The founder, Raj Rajaratnam, was convicted and sentenced to 11 years in 2011 and released to home confinement in the summer of 2019^S3^S6. The matter is final.

Scope. This record covers only the Galleon insider trading case and the records against Galleon and Raj Rajaratnam. It does not assess the separate cases against Rajat Gupta or the other co-defendants.

Claims assessed

4 claims. Scores grade the evidence for each claim, not the organization.

Supported94
The US Attorney for the Southern District of New York said in October 2011 that Galleon founder Raj Rajaratnam was convicted on all 14 counts and sentenced to 11 years in prison for insider trading.
Regulator statement, 13 October 20113 records citedMarket conduct
Supported90
The SEC said in November 2011 that a federal court ordered Raj Rajaratnam to pay a US$92.8 million civil penalty in its insider trading case.
Regulator statement, 8 November 20112 records citedMarket conduct
Contradicted91
On appeal Raj Rajaratnam argued that the FBI wiretaps used against him were unlawfully authorized and that his conviction should be reversed.
Court filing, 24 June 20131 record citedMarket conduct
Partly supported74
The SEC said the US$92.8 million penalty against Raj Rajaratnam was the largest ever assessed against an individual in an SEC insider trading case.
Regulator statement, 8 November 20111 record citedMarket conduct

Cases and proceedings

SEC v. Galleon Management, LP, Raj Rajaratnam and othersUS District Court for the Southern District of New York. Civil. 09-CV-8811 (JSR).Stage: Final. Civil penalty judgment entered 8 November 2011^S4
- 16 October 2009 SEC files civil complaint alleging more than US$25 million in illicit gains^S1^S2
- 8 November 2011 Court orders a US$92.8 million civil penalty^S4
United States v. Raj RajaratnamUS District Court for the Southern District of New York and US Court of Appeals for the Second Circuit. Criminal. Appeal docket 11-4416-cr.Stage: Final. Conviction affirmed on 24 June 2013^S5
- 13 October 2011 Sentenced to 11 years, US$10 million fine, US$53,816,434 forfeiture^S3
- 24 June 2013 Second Circuit affirms the conviction^S5

Responses on record

Raj Rajaratnam, October 2009, on The US Attorney for the Southern District of New York said in October 2011 that Galleon fo...
At the time of the charges Rajaratnam said he was innocent, as reported by Bloomberg.^S7

Revision history

25 October 2026 Profile and 4 assessments first published. Records checked to 25 October 2026.

Source records

S1Tier A SEC Charges Billionaire Hedge Fund Manager Raj Rajaratnam with Insider TradingUS Securities and Exchange Commission. Regulator press release. 16 October 2009.Supports the SEC charges and the more than US$25 million illicit gains figure. It is an allegation, not a finding.
S2Tier A SEC v. Galleon Management, LP, et al., Litigation Release No. 21255US Securities and Exchange Commission. Regulator press release. 16 October 2009.Supports the case caption, the Southern District of New York court and case number 09-CV-8811 (JSR). It states allegations only.
S4Tier A SEC Obtains Record $92.8 Million Penalty Against Raj RajaratnamUS Securities and Exchange Commission. Regulator press release. 8 November 2011.Supports the US$92.8 million civil penalty, Judge Rakoff, the 8 November 2011 date and the SEC's own largest ever characterization. The record claim is the SEC's own wording.
S3Tier A Galleon Management Founder Raj Rajaratnam Sentenced in Manhattan Federal Court to 11 Years in Prison for Insider TradingUS Attorney's Office, Southern District of New York. Government press release. 13 October 2011.Supports the 11 May 2011 conviction on all 14 counts, the 11 year sentence, the US$10 million fine and the US$53,816,434 forfeiture. Names Judge Holwell.
S5Tier A United States v. RajaratnamUS Court of Appeals for the Second Circuit. Court judgment. 24 June 2013.Supports the affirmance of the conviction and the rejection of the wiretap challenge under the Franks framework. Read through a court report page.
S7Tier C Galleon said to have liquidated more than 90% of investmentsBusiness Standard (Bloomberg). Press report. 29 October 2009.Supports the October 2009 liquidation of Galleon's funds and the plan to return investor money, and reports Rajaratnam said he is innocent. Used for colour and the denial.
S6Tier C Galleon's Raj Rajaratnam Is Released From Prison Two Years EarlyBloomberg. Press report. 6 September 2019.Supports the summer 2019 release to home confinement. Used for the current status of the sentence only.