Hedge founder gets 11 years in prison in insider trade probe

NEW YORK (AP) — A former billionaire described by the government as "the modern face of illegal insider trading" was sentenced today to 11 years in prison, the longest insider trading sentence ever but far short of the two decades sought by prosecutors.

Galleon Group founder Raj Rajaratnam also was fined $10 million and ordered to forfeit $53.8 million by U.S. District Judge Richard J. Holwell, who said he concluded that Rajaratnam made well over $50 million in profits from his illegal trades.

"His crimes and the scope of his crimes reflect a virus in our business culture that needs to be eradicated," Judge Holwell said. "When the integrity of the marketplace is called into question, the public suffers."

The sentence eclipsed by one year the prison term given to one of Rajaratnam's co-defendants just weeks ago.