Former distinguished Harvard Business School billionaire alum Sri Lankan American Raj Rajaratnam, whose Galleon Group managed more than $7 billion, and who was central to the largest hedge fund insider-trading rings in the history of the U.S., was released from prison two years early. He has been living with his family on a quiet block of Manhattan’s East Side since July 23, according to the Federal Bureau of Prisons. Rajaratnam was sentenced to 11 years behind bars after his 2011 conviction on insider trading. He served his time at the Federal Medical Center Devens, a prison outside Boston.
He falls under the First Step Act, which allows some federal inmates who are over 60 years old, or who face terminal illnesses, to serve the end of their sentences at home.
The early from prison wasn’t announced by the U.S. Bureau of Prisons. Rajaratnam was due to be released on July 4, 2021, according to the Bureau of Prison.
Rajaratnam was found guilty of 14 counts stemming from trades on inside information from corporate executives, bankers, consultants, traders and other insiders. Among his tipsters was Indian American Rajat Gupta, then a board member at Goldman Sachs Group Inc., who later went to prison for leaking secrets to Rajaratnam. Prosecutors alleged Rajaratnam earned more than $72 million from the illicit tips. Rajaratnam’s 11-year sentence was one of the longest in the insider crackdown.