Prosecutors had alleged Rajaratnam made profits and avoided losses totaling more than $60 million from illegal tips. His Galleon Group funds, they said, became a multibillion-dollar success at the expense of ordinary stock investors who didn't have advance notice of the earnings of public companies and of mergers and acquisitions.
On Wednesday, Rajaratnam sat at the defense table, a rarity for him at the trial. He will remain free on bail, though now with electronic monitoring, at least until his July 29 sentencing.
Prosecutors said Rajaratnam, 53, faces a maximum term of more than 19 years in prison.
U.S. Attorney Preet Bharara said the verdict sent a message that white-collar laws applied to everyone, "no matter how much money you have."
The defendant "was among the best and the brightest, one of the most educated, successful and privileged professionals in the country," Bharara said in a statement. "Yet, like so many others, he let greed and corruption cause his undoing."
Outside court, with Rajaratnam at his side, defense attorney John Dowd said there would be an appeal filed with the U.S. Court of Appeals for the Second Circuit. Of the 37 trades that the government sought to prosecute, he added, only 14 made it to trial.
"The score is 23-14, in favor of the defense," he said. "We'll see you in the Second Circuit."
The verdict came after seven weeks of testimony showcasing wiretaps of Rajaratnam dealing behind the scenes with corrupt executives and consultants.
