Another hedge-funder is going to prison for insider trading. Only this time, the imprisonment of convicted Wall Street crook Raj Rajaratnam could be costly to some corporate school reforms and charter school privateers.
Rajaratnam, 54-year-old founder of the Galleon Group hedge fund was sentenced to 11 years in a North Carolina federal prison where he could wind up as Bernie Madoff's cell mate. He was also fined $10 million and ordered to forfeit $53.8 million in what the judge said were illicit profits from trading on confidential corporate information.
But one of the biggest losers is the deal will be charter operator and star of Waiting For Superman, Geoffrey Canada, president and chief executive of the Harlem Children’s Zone. The New York Times reports that, Wall Street has been particularly fond of supporting his cause, which helps administer a range of social and educational services to families within a 100-block area of Harlem. And that is precisely why defense lawyers for Mr. Rajaratnam asked him to testify on behalf of their client, which he did. According to the Times, "Mr. Rajaratnam has been pretty generous to Mr. Canada’s charities."