<div>Rengan Rajaratnam, who was cleared of criminal insider trading charges following the conviction of his older brother, Galleon Group founder Raj Rajaratnam, has agreed to pay more than $841,000 to resolve civil claims by the U.S. Securities and Exchange Commission.<br /><br />The settlement was filed on Thursday by the SEC in New York federal court, three months after a federal jury in Manhattan acquitted Rengan Rajaratnam of conspiring to engage in insider trading, a rare defeat for U.S. prosecutors. Under the agreement with the SEC, Rajaratnam will pay the $841,243 in four equal payments and will neither admit nor deny wrongdoing. The deal must be approved by U.S. District Judge John Koeltl in Manhattan.<br /><br />As part of the agreement, Rajaratnam, 43, also agreed to be barred from the securities industry, the SEC said.<br /><br />"The settlement ensures he's out of the industry and paying a serious price for breaking the law," Andrew Ceresney, the SEC's enforcement director, said in a statement.<br /><br />Daniel Gitner, a lawyer for Rajaratnam, emphasised in a statement that his client had been found not guilty in the criminal trial and the settlement did not include an admission of wrongdoing.<br /><br />"Rengan is moving on to the next phase of his life," Gitner said.<br /><br />The SEC and Rajaratnam disclosed settlement talks in July, days after a jury acquitted the onetime portfolio manager at his brother's Galleon hedge fund of conspiring to engage in insider trading.<br /><br />Prosecutors had accused Rengan Rajaratnam of participating in an insider trading scheme with his brother involving technology companies Clearwire Corp and Advanced Micro Devices Inc in 2008.<br /><br />The SEC lawsuit included some of the same allegations but also contended Rengan Rajaratnam engaged in a broader scheme from 2006 to 2008 involving additional stocks and trading during his time at Sedna Capital Management, a fund he founded.<br /><br />Those other stocks included Polycom Inc, Hilton Hotels Corp and Akamai Technologies Inc, the SEC said. The trading resulted in more than $3 million in illicit gains, the SEC said in the lawsuit, which was filed in March 2013 on the day Rajaratnam was also indicted.<br /><br />Rajaratnam's acquittal in the criminal case represented the first loss in more than 80 insider trading cases brought by Manhattan U.S. Attorney Preet Bharara since 2009 as part of a major crackdown.<br /><br />Raj Rajaratnam, 57, is serving an 11-year prison sentence after being found guilty at trial in 2011 of engaging in an insider trading scheme that resulted in $63.8 million in illicit profit.<br /><br />The case is SEC v. Rajarengan Rajaratnam, U.S. District Court for the Southern District of New York, No. 13-cv-1894.<br /><br />(Reuters)</div>
