White collar crook Rajaratnam fined record $92.8 million

@CNNMoney November 8, 2011: 5:37 PM ET
Raj Rajaratnam was convicted of insider trading.

Former hedge fund manager Raj Rajaratnam has been fined an additional $92.8 million, on top of existing fines and forfeitures and an 11- year sentence for insider trading.

NEW YORK (CNNMoney) -- The Securities and Exchange Commission fined Raj Rajaratnam, the former hedge fund manager recently convicted of insider trading, nearly $93 million on Monday.

The civil penalty of $92,805,705 is the highest fine the SEC has ever levied against an individual. The white collar criminal has also been fined $10 million and is ordered for forfeit his ill-gotten gains of $53.8 million.

Altogether, that adds up to about $156.6 million.

The Galleon Group founder is a wealthy man, but he's been ordered to pay the $92.8 million civil penalty within 14 days. His lawyer, Terence Lynam, was not immediately available to say whether his client can come up with the money.

On top of all that, Rajaratnam faces 11 years in federal prison, the longest-ever sentence for insider trading. He is ordered to report to authorities on Dec. 5 to begin his sentence.

Rajaratnam is a diabetic with "imminent kidney failure" and will need a transplant during his prison stay, according to the federal judge who sentenced him.

As a result of his severe health problems, he will probably serve his time at the Federal Medical Center Devens in Massachusetts, according to prison experts. Devens specializes in kidney treatment, but transplants are conducted at non-prison hospitals.

Rajaratnam's treatment could cost taxpayers as much as $300,000, including the cost of preparing for the procedure and years of anti-rejection therapy, according to Dr. Stephen Textor, a nephrologist at the Mayo Clinic Transplant Center in Rochester, Minn.

Rajaratnam's transplant could cost taxpayers

The money from Rajaratnam's fines will be placed into a general fund and would not be used to directly fund his treatment, according to a prison official. Also, he is not allowed to pay for his own treatment.

Medical costs for inmates in the federal prison system totaled $495 million in the most recent fiscal year, according to the Federal Bureau of Prisons. To top of page

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