The Biggest Insider Traders of All Time
Milken was accused by the SEC of racketeering, stock manipulation and insider trading, but he denied most of the charges, especially with regards to insider trading. Prosecutors then used arguably “sharp” tactics in order to ultimately get him formally charged and sentenced. They pressured his family, threatening to charge his brother for illegal behavior and even went as far as to involve his 92 year-old grandmother.
Raj Rajaratnam
Boesky surrendered to the SEC to avoid further harassment of his family and accepted the prosecutor’s offer. He ended up paying $200 million in fines, $400 million in restitution to investors who suffered through his actions and $500 million to Drexel’s investors in a related civil lawsuit. In short, he paid out a record $1.1 billion, was barred from the security’s industry for life and also sentenced to 10 years in jail, although the sentence was later reduced to two years.
“Milken was accused by the SEC of racketeering, stock manipulation and insider trading but he denied most of the charges, especially with regards to insider trading.” After being released from jail, Milken was diagnosed with a prostate cancer and was given a very low chance of surviving it. Ever the fighter, Milken battled his cancer and survives to this day. He has built a new life as a philanthropist dedicating his time and money to medical prevention and research. The Junk Bond King became The Man Who Changed Medicine.
Born: June 15, 1957 (aged 55) in Sri Lanka Occupation: Hedge fund manager Sentence: $150 million in civil and criminal penalties plus 11 years in prison Style: traded equities allegedly on tips he received from insiders Illegal Trading haul: at least $60 million Raj Rajaratnam’s insider trading case is fresh in our memory, with his case occurring in the very recent past and receiving a large amount of media coverage as the SEC looked to send a clear message to hedge funds that they are serious about their recent crackdown against insider trading. Rajaratnam was sentenced to a record 11 years in prison even though he pleaded not guilty.
May 2013
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