The hedge fund Galleon group founder Raj Rajaratnam who was given the longest jail term of 11 years for indulging in insider trading, began his prison term in the Federal Medical Center in Devens, Massachusetts on Monday. This facility is located in the decommissioned military base Fort Devens, is for those inmates who require specialized or long term medical or mental health care treatment. Rajaratanam is said to be suffering from various health problems like diabetes, sleep apnea and high blood pressure and may also require a kidney transplant. The Sri Lankan born billionaire, last week had lost his appeal before the Federal Appeals Court to let him free while he appeals his conviction.
The 2nd US Circuit Court of Appeals in New York refused to allow bail to the Galleon Group hedge fund founder Raj Rajaratnam. On October 16, 2009 he was arrested by the FBI on charges of insider trading. This had caused Raj Rajaratnam’s company Galleon Group to close down. On May 11, 2011 he was found guilty of 14 counts of conspiracy and securities fraud. On October 13, 2011 Raj Rajaratnam was sentenced to prison for a term of 11 years by the US District Court for the Southern District of New York. This is the longest jail term ever awarded for insider trading.