Illicit Profits
If the money can’t be located or property has been sold, the indictment allows for prosecutors to obtain substitute assets. If the hedge fund is convicted, the law allows for the federal judge presiding over the case to determine how much should be forfeited as illicit profits from the crime.
For example, Galleon Group LLC co-founder Raj Rajaratnam was ordered to forfeit $53.8 million which his trial judge determined were the proceeds he reaped from his crimes.
“What the criminal law hopes to achieve and what we intend to do,” Bharara said at a press conference last week, “is to get back what makes sense, given the actions that have been taken before and given what the conduct was of people at the company, given what profits were made and given what an appropriate criminal penalty may be.”
The case is U.S. v. SAC Capital Advisors LP, 13-05182, U.S. District Court for the Southern District of New York (Manhattan).