Is It Worth the Money?

The lead article in today’s New York Times, “Hedge Fund Billionaire is Guilty of Insider Trading,” shows that while the times may change, human nature doesn’t. Raj Rajaratnam, a prominent investor, was famous for his diligent business research, and that research led to the founding of his own hedge fund and clients such as UBS and New Jersey’s state pension fund.

However, the prosecutor in this case described Mr. Rajaratnam as doing his homework, but also cheating on the test. Insider trading and yesterday’s conviction, with a possible sentence of 25 years and probable of 19 years, according to federal sentencing guidelines, will ruin the second half of his life.

It is reassurng to see corrupt individuals on Wall Street being held to account, especially after the lack of prosecutions for our recent financial collapse. The use of wiretaps and other investigative techniques has now led to a slew of charges against Wall Street insiders, 47 in all, with 36 having been convicted or pled guilty. This story will help to give “Main Street” some satisfaction after struggling to make ends meet, dealing with credit card debt and beset by a slew of foreclosures.

Mr. Rajaratnam is now under electronic surveillance in his home and faces sentencing on July 19th. Greed is not good; it was his ultimate downfall.