577 Round Hill Road

That’s the Raj’s house, which he paid $7.5 million for in 2000. Hard to believe such a smart trader would overpay for Greenwich real estate but there it is. 2010 assessment is $5.361 (70% of 2010 market value) so maybe, maybe, the Raj’s wife will break even on this, assuming the happy couple didn’t put a dime of improvements into it in the past 11 years. That seems unlikely.

But for a man who until yesterday was worth an estimated $1.5 billion, I doubt a loss on this house will amount to anything more than pocket change, even if he gets nailed with some fines and penalties. The man has bigger things on his mind, anyway. I assume he’ll stay on, wearing his new ankle bracelet, until his appeals run out but when they do, look for the wife to sell and get out, if she hasn’t left already.

Thought for today: how much do you think Raj would have paid of his $1.5 billion to avoid spending the next twenty years in prison? And how much did he make on these puny deals? Boggles the mind.

9 Comments

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9 responses to “577 Round Hill Road

  1. Inagua

    Raj has a chance to cut his prison time substantially by admitting guilt, cooperating, and paying a big fine. That was how Boesky and Milken got their prison time down to two years. Otherwise, Raj will do about 15 years and get to keep most of his money.

  2. Walt

    Dude –
    Your naiveté continues to amaze me. You load. He made much more by insider trading than what they charged him with. He made it ALL that way. This is just what they could prove. And they didn’t need to prove any more.

    But his whole business was based on insider knowledge. And he isn’t alone.
    Don’t you find it just a little bit odd that Goldman can go quarter after quarter and NEVER HAVE ONE DAY where they lose money on their prop trading desk? How do you think they do that Einstein? Use a magic eight ball? And JP Morgan does it too!! Oh, they must have really good computers, right? Yeah, that must be it!!

    I think it’s 50/50 Raj takes off, even if he does have a hula hoop sized ankle bracelet on. If he doesn’t, I agree with the Lizard Boy. He will cop a plea, get 3-5 years, out after two for good behavior. Plus they can’t afford to feed him much longer than that anyway.
    Your Pal,
    Walt

  3. Perry Mason

    I’ve love to know why different cases the wife gets to keep the house (Boesky and Milkin both, I believe yes) but Madoff no. Is there any reason to think Mrs. Raj will get to keep (and sell) 557? And could she keep the proceeds for her own lifestyle?

    • Dear Mr. Mason – I’m sure Mrs. Raj will be able to keep the house but from what I hear, she doesn’t want to. It’s way, way up Round Hill, past Sumner Road and Aiken, and I can understand why she wouldn’t want to hang out there for the next 2 (if some predictions bear out) to 19 (if ol’ Raj gets the hammer) years.

  4. Out Looking In

    Walt is spot on, at least until the bit about taking off for the jungles of sri lanka (or maybe habana?) although he started his fund just before the tech bubble exploded…so we can thank easy alan greenspan for raj as well

  5. Inagua

    Walt – I agree with you that inside trading was probably the bulk of Raj’s business. The government indentified 37 dirty trades, but only went to trial on 14 trades. There were probably hundreds more. Which is what makes Raj’s current position so interesting. He can almost certainly buy many years of freedom by confessing and paying a huge fine. Or he can “earn” tens of millions a year by going to prison for a very long time. I know what I would do. But it is anyone’s guess what a greedy, delusional, and not too bright criminal like Raj will do.

  6. anon

    wait i don’t get it he was convicted so how can he cop a plea now? isn’t it too late. if i recall milkin didn’t go to trial, he plead before. the feds don’t need raj to convict others in the scheme, as most of the others have plead guilty already, and plus they have all the names and evidence they need on tape. he’s worthless to them from an information perspective, unless there’s some bigger fish out there….maybe another ackcountry resident.

    • No, Anon, you’re quite right – the time for a plea bargain was a couple of years ago and it is indeed too late now. The question is, what will his sentence be? Similar insider trading convicts have received as little as 2 – 3 years and others as much as 20. The sentencing judge could go either way and he’ll have precedent to support him.

  7. anon

    to borrow a rhyming technique from his attorney, one could guess that it will be a long sentence… …if he’s brown he’s going down.