US prosecutors recommend max jail for Rajaratnam

Federal prosecutors yesterday filed a 56-page `Government`s Sentencing Memorandum` recommending a "very substantial term of imprisonment proportionate to the historic nature of his crime."

Separately, the defence submitted its own 79-page memo asking for a lenient prison term "substantially below" the recommended guidelines saying a lengthy prison term would "seriously threaten his well-being" and would be "a death sentence."

The defence memo also referred to Rajaratnam`s health problems, describing them as "a unique constellation of ailments ravaging his body."

Federal prosecutors termed Sri Lanka-born Rajaratnam, 54, as the "modern face of illegal insider trading" saying "he is arguably the most egregious violator of the laws against insider trading ever to be caught."

Their memo said the court should impose the maximum sentence of 235 to 293 months established for his crime under nonbinding sentencing guidelines, a ruling that will "deter others in the hedge fund and money management world from engaging in a crime that is far too rampant."

The memo was submitted to Judge Richard Holwell, who is scheduled to sentence Rajaratnam on September 27.

Dowd added that "with the sole, and significant, exception of his criminal conviction in this case, the evidence shows that Rajaratnam lived a life that was not just blameless, but exemplary."

The memo highlighted Rajaratnam`s 45 million dollars worth philanthropic gifts.

While the defence`s memo argues that Rajaratnam?s crimes did not harm anybody, the government?s memo states Rajaratnam "corrupted" old friends, subordinates and markets.

"Day after day, month after month, year after year, Rajaratnam operated a billion-dollar force of deception and corruption on Wall Street."

Rajaratnam was convicted in May on 14 criminal counts of conspiracy and securities fraud.