Sentencing of insider trader Rajaratnam delayed

New York: Sentencing of Raj Rajaratnam,the hedge fund magnate convicted in the biggest Wall Streetinsider trading case in years, has been postponed until

October.

A court order yesterday by New York federal JudgeRichard Holwell moved sentencing day from 27 September to 13October. No reason was given.

[caption id="attachment_89331" align="alignleft" width="380" caption="The founder of the GalleonGroup hedge fund was found guilty on 14 counts of conspiracyand securities fraud in May.PTI"][/caption]

Sri Lanka-born Rajaratnam, founder of the GalleonGroup hedge fund, was found guilty on 14 counts of conspiracyand securities fraud in May. An initial sentencing date of 29July had already been postponed until the end of the summerwhile Rajaratnam, 54, remained under house arrest.

Prosecutors have asked for a hefty sentence of as muchas 24 years.The trial, which ended after 12 days of jurydeliberations, was seen as a landmark assault by the JusticeDepartment on Wall Street corruption. Unusually for a white

collar probe, prosecutors made heavy use of wiretaps to recordphone conversations at Galleon.

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Insider trading is generally considered difficult toprove and Rajaratnam's lawyers had argued that he was simplypursuing the kind of deep research that was required of him,rather than seeking illegal tips.In seeking a lighter sentence, lawyers have argued thatRajaratnam did not steal money or lose the funds of anyclients.

AFP