Raj Rajaratnam, the former head of the Galleon Group hedge fund, was sentenced to 11 years in prison, fined $10 million, and was ordered to forfeit $53.8 million. A jury convicted Mr. Rajaratnam of securities fraud and conspiracy in May after a two-month trial. Mr. Rajaratnam’s prison sentence continues a trend of ever-stiffer penalties against white-collar criminals. Corporate wrongdoers have received record-length sentences in recent years, some even facing 150 year sentences. A debate is being waged that has one side believing in harsher punishments for white-collar crime, and another side believing it should be on par with the average sentences for violent crimes like kidnapping and sexual abuse. Advocates of more lenient insider-trading sentences also say that Rajaratnam’s crime does not have any real identifiable victims as opposed to other white-collar crimes that destroy lives.
Mr. Rajaratnam’s case and the government’s broader crackdown have highlighted many problems related to the global financial crisis as well as Americas continued economic hardships. Before the economic downturn, would Rajaratnam have been punished as harshly? The answer is no. White-collar crimes are being taken more seriously because America and the world are struggling financially more than they have had to in their lifetime. Another issue being brought to light involves equality in the question of “Why shouldn’t crime in the suites be punished as severely as crimes on the streets?” Government officials are taking a global stand to crack down on these crimes despite what some people think. The main reason is because these crimes are being socially constructed as more severe than they have been in the past. As stated earlier, this is because a financial crime such as this is affecting more of society than it ever has.
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