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Rajaratnam set to return to jail

world Updated: Dec 02, 2011 23:36 IST

AFP
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Disgraced hedge fund manager Raj Rajaratnam on Thursday lost his final attempt to avoid starting an 11-year prison sentence in the biggest Wall Street insider trading case in a generation.

The 2nd US Circuit Court of Appeals turned down a bid by the Sri Lankan-born founder of the Galleon Group hedge fund to stay at home while his case is appealed, something that could take about a year.

The order from the court in New York means Rajaratnam will have to start his sentence, the longest ever imposed for insider trading, on Monday.

In the brief document, the court said Rajaratnam's motion to be released pending appeal "is denied. The defendant shall surrender at such time and place as shall be instructed."

Rajaratnam, once a star of the high-powered hedge fund industry, was convicted on all 14 counts of insider trading while at Galleon, which managed some $7 billion in funds.

Dozens of others have been convicted or have pleaded guilty in the probe, which was unusual for a white collar crime case because of the extensive use of wiretaps.

The sentencing judge refused the prosecution's request that he be sentenced to as much as 24 years in prison, citing Rajaratnam's poor health. Rajaratnam was said to suffer diabetes and to need urgent treatment for kidney failure.