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Rajaratnam to Pay $92.8M Penalty

The hits keep coming for convicted hedge-fund guru Raj Rajaratnam, who was ordered by a federal judge to pay a $92.8 million penalty on top of the fines ordered last month with his 11-year prison sentence. Today’s penalty is the largest ever imposed on an individual in an insider-trading case assessed by the Securities and Exchange Commission. Judge Jed S. Rakoff came up with the figure, which amounts to three times the illegal gains Rajaratnam earned as head of the Galleon Group. Though it’s not entirely clear how much money Rajaratnam has left, Judge Rakoff said his net worth “considerably exceeds” his penalties—a total of $156.6 million.