Records are meant to be broken, and the SEC did it in style today.  The Commission obtained its highest ever civil monetary penalty of $92.8 million against  Galleon's Raj Rajaratnam, for his widespread insider trading. The final judgment entered today by Federal Judge Jed Rakoff in Manhattan finds Rajaratnam liable for a civil monetary penalty of $92,805,705 - the largest penalty ever assessed against an individual in an SEC insider trading case. Two Years In The Making. The SEC charged Rajaratnam on 10/16/09, alleging that he and several others including his hedge fund advisory firm Galleon Management LP engaged in a massive insider trading scheme.  The SEC subsequently amended its complaint in November 2009 and January 2010, adding several more defendants and alleging additional insider trading schemes that cumulatively generated more than $52 million in illicit gains.

“The penalty imposed today reflects the historic proportions of Raj Rajaratnam’s illegal conduct and its impact on the integrity of our markets.” - - Robert Khuzami, SEC Enforcement Director.

The overall insider trading probe resulted in civil charges against 29 individuals and entities, including hedge fund advisers, Wall Street professionals, and corporate insiders.  Insider trading allegedly was effected in the securities of over 15 publicly traded companies for more than $90 million in illicit profits or losses avoided. Parallel Criminal Case. The SEC provided significant assistance to the U.S. Attorney’s Office for the Southern District of New York in its successful criminal prosecution of Rajaratnam, who was found guilty on 5/11 of this year - on all 14 counts charged, including 5 counts of conspiracy to commit securities fraud and 9 counts of securities fraud.  Following the jury verdict, Rajaratnam was sentenced to 11 years in prison, and was ordered to pay more than $54mn in forfeiture of illicit gains and $10 million in criminal fines.  Rajaratnam was fined a combined total of some $157mn in the civil and criminal cases. Other Financial Hits to Rajaratnam. Among other sanctions, Rajaratnam is liable for an unspecified amount of disgorgement and prejudgment interest, which are deemed satisfied by the forfeiture ordered against Rajaratnam in the criminal case. Separately, on 10/27/11, the SEC obtained a final judgment by consent against Galleon Management, which will be held jointly and severally liable for the monetary relief ordered against Rajaratnam. For further details, go to:   [SEC PR 11-233, 11/8/11]