"Recently, the SEC imposed the harshest fine ever levied for insider trading in a case that involved former Galleon Group hedge fund manager Raj Rajaratnam. Rajaratnam was fined $10 million, a civil penalty of nearly $93 million, in addition to an 11 years sentence in federal prison.

Roomy Khan, an employee of Galleon worked with the FBI in sealing Rajaratnam's fate. But although she collaborated and assisted the FBI, the SEC clearly wanted to send a message by jailing Khan for a term of one year in federal prison for illegally passing inside information as well as obstructing justice. The formal charge that led to her incarceration was categorized as wire fraud."

Source
https://www.southflalaw.com/insider-trading-penalties-can-be-very-harsh.html

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