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Rajaratnam Sentencing Delayed Until Mid-October

The sentencing of former hedge-fund mogul Raj Rajaratnam has been delayed two weeks to October 13, according an order Wednesday by U.S. District Judge Richard Holwell.

Raj Rajaratnam co-founder of the Galleon Group hedge fund.
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Raj Rajaratnam co-founder of the Galleon Group hedge fund.

Rajaratnam, the co-founder of the Galleon Group who was convicted May on 14 insider trading counts, was scheduled to be sentenced next week. No reason was given for the delay.

Prosecutors and defense attorneys have been sparring in court filings over Rajaratnam's sentence. The government is arguing for a sentence of 20 to 24 years, "to send a clear and unequivocal message that illegal insider trading will not be tolerated."

But defense attorneys say Rajaratnam, 54, is being unfairly portrayed as "the poster child for every wrongful act that has ever been associated with Wall Street." They argue for a much lighter sentence, and they note, "Mr. Rajaratnam is not a healthy man, and his death will be hastened by a term of imprisonment."

Defense attorneys have also asked that Rajaratnam be allowed to remain free on bail while he appeals his conviction.

The sentencing delay comes on the same day that another judge, U.S. District Judge Richard Sullivan, sentenced former Galleon trader Zvi Goffer to 10 years in prison for his role in a separate insider trading scheme. Goffer was convicted in June on 14 counts.