Prosecutor: NY hedge fund boss made $72M illegally

By the Associated Press | October 4, 2011 | 11:25 AM EDT

NEW YORK (AP) — A prosecutor has asked a federal judge to sentence a New York hedge fund founder convicted of insider trading charges based on illegal gains of more than $70 million.

The prosecutor, Andrew Michaelson, told Judge Richard Holwell (HAHL'-wehl) on Tuesday that he should reject arguments by defense attorneys. They say Raj Rajaratnam (rahj rah-juh-RUHT'-nuhm) made as little as $7 million through his trades.

Rajaratnam is scheduled to be sentenced next week after his conviction earlier this year.

Prosecutors have asked that he be sentenced to between 23 1/2 years and 29 1/2 years in prison. Defense lawyers have urged leniency, in part for health reasons that remain under seal.

Michaelson says the judge should reject defense arguments that Rajaratnam should only be held accountable for trades he made in personal accounts.