Securities and Exchange Commission v. Galleon Management, LP et al

Filing 252

FINALJUDGMENT AS TO DEFENDANT RAJ RAJARATNAM #11,1246 in favor of Securities and Exchange Commission against Raj Rajaratnam in the amount of $ 92,805,705.00. (Signed by Judge Jed S. Rakoff on 11/8//11) (Attachments: # 1 Notice of Right to Appeal)(dt)

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

SECURITIES AND EXCHANGE COMMISSION,
09 CV 8811 (JSR)

Plaintiff,
-against-

ECFCASE

RAJ RAJARATNAM, et al.
Defendants.

FINAL JUDGMENT AS TO DEFENDANT RAJ RAJARA TNAM
Upon consideration of the motion for summary judgment filed by Plaintiff Securities and
Exchange Commission ("Plaintiff') against Defendant Raj Rajaratnam ("Defendant"), and upon
consideration of all briefing and argument of the parties relating thereto, and based upon the
entire record now before the Court:
I.

IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant and
Defendant's agents, servants, employees, attorneys, and all persons in active concert or
participation with them who receive actual notice ofthis Final Judgment by personal service or
otherwise are permanently restrained and enjoined from violating, directly or indirectly, Section
lO(b) of the Securities Exchange Act of 1934 (the "Exchange Act") [15 U.S.C. § 78j(b)] and
Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.1 Ob-5], by using any means or
instrumentality of interstate commerce, or of the mails, or of any facility of any national
securities exchange, in connection with the purchase or sale of any security:
(a)

to employ any device, scheme, or artifice to defraud;

(b)

to make any untrue statement of a material fact or to omit to state a material fact
necessary in order to make the statements made, in the light of the circumstances
under which they were made, not misleading; or

(c)

to engage in any act, practice, or course of business which operates or would
operate as a fraud or deceit upon any person.

II.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant
and Defendant's agents, servants, employees, attorneys, and all persons in active concert or
participation with them who receive actual notice of this Final Judgment by personal service or
otherwise are permanently restrained and enjoined from violating Section 17(a) of the Securities
Act of 1933 (the "Securities Act") [15 U.S.C. § 77q(a)] in the offer or sale of any security by the
use of any means or instruments of transportation or communication in interstate commerce or by
use ofthe mails, directly or indirectly:
(a)

to employ any device, scheme, or artifice to defraud;

(b)

to obtain money or property by means of any untrue statement of a material fact
or any omission of a material fact necessary in order to make the statements
made, in light of the circumstances under which they were made, not misleading;
or

(c)

to engage in any transaction, practice, or course of business which operates or
would operate as a fraud or deceit upon the purchaser.

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III.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant
is liable for disgorgement ofms profits gained and losses avoided, together with prejudgment
interest thereon at the rate employed by the Internal Revenue Service for underpayment of taxes.
Defendant's disgorgement obligations under this paragraph, including all outstanding pre and
post jUdgment interest, are hereby deemed satisfied by the forfeiture ordered against Defendant in
the criminal case before the United States District Court of the Southern District of New York,
titled United States v. Raj Rajaratnam, 09-CR-1184(RJH).

IV.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant shall pay a
civil penalty in the amount of$ <f~

ge$J ?6~~pursuant to Section 21A of the Exchange

Act [15 U.S.C. § 78u-l]. Defendant shall make this payment within 14 days after entry of this
Final Judgment by certified check, bank cashier's check, or United States postal money order
payable to the Securities and Exchange Commission. The payment shall be delivered or mailed
to the Office of Financial Management, Securities and Exchange Commission, 100 F Street, NE,
Stop 6042, Washington DC 20549, and shall be accompanied by a letter identifYing Raj
Rajaratnam as a defendant in this action; setting forth the title and civil action number of this
action and the name of this Court; and specifying that payment is made pursuant to this Final
Judgment. Defendant shall pay post-judgment interest on any delinquent amounts pursuant to 28
USC § 1961. The Commission shall remit the funds paid pursuant to this paragraph to the
United States Treasury.

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V.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain
jurisdiction ofthis matter for the purposes of enforcing the tenus of this Final Judgment.
VI.
There being no just reason for delay, pursuant to Rule S4(b) of the Federal Rules of Civil
Procedure, the Clerk is ordered to enter this Final Judgment forthwith and without further notice.

Dated:

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