It comes on top of the $10 million fine Rajaratnam was ordered to pay and the $53.8 million of illicit gains he was ordered to forfeit in the Justice Department’s criminal case.
In imposing the civil fine, U.S. District Court Judge Jed S. Rakoff cited “the huge and brazen nature of Rajaratnam’s insider trading scheme.”
The case “cries out for the kind of civil penalty that will deprive this defendant of a material part of his fortune,” the judge wrote.
The judge did not disclose Rajaratnam’s net worth, but he said it “considerably exceeds” the penalties that were imposed in the criminal case.
The $92.8 million fine was triple an estimate of the profit gained or the loss avoided in the illegal trades.
A spokeswoman for Rajaratnam’s legal team declined to comment.
The defense team had argued that the penalty in the criminal case was sufficient and no further fine should be assessed. The defense also had said that the judge who presided over the criminal case could have ordered the former Galleon Management head to pay much more but decided a larger fine was not warranted.
In a recent court filing, the defense urged Rakoff to take a more favorable view of Rajaratnam’s character. Rajaratnam’s behavior shows that “he was not motivated by greed or by the desire to make a lot of money,” the defense said.
The defense quoted an assessment by the probation department that Rajaratnam “cares deeply about leaving behind a better world than the one to which he was born.”
Rajaratnam is scheduled to report for prison on Dec.5, having recently received an extension from Nov. 28.
The previous record for a fine paid by an individual in an SEC insider trading case was held by Ivan Boesky, a central figure in Wall Street scandals of the 1980s, according to the SEC. In his SEC case, Boesky was ordered to pay a fine of $50 million and to give up ill-gotten gains of $50 million.
Rajaratnam was given the option of paying his fine by a variety of methods, including cashier’s check or postal money order.