Raj Rajaratnam’s wife and the marital assets
One of America’s wealthiest individuals, Raj Rajaratnam’s, is in big trouble and his legal woes could strain marital assets to the detriment of his wife Asha Pabla and the couple’s three children. Raj, a self-described family man and a manager of the $8 billion hedge fund Galleon Group, was arrested on Friday, as you know, for insider trading. The Galleon Group hedge fund owner/manager is facing up to 20 years or more in prison if convicted. He needs a damn good criminal defense attorney. He’s currently repped by Jim Walden, but I’ve never heard of Jim. Hope Jim is better than Ira Sorkin? Ira is a super lawyer in New York according to Super Lawyers Magazine. Jim didn’t even make the list.
The problem is, these lawyers, who ever they are, don’t come cheap. They are not like divorce attorneys who work and don’t get paid and have to eat their losses. These boys get paid up front. Huge retainers. Unbelievable. By the time Raj is done with defending this action, he could easily spend a few million dollars – will definitely send Jim’s kids to college, grad school and even post doctoral school. And, obviously, it’s Raj’s money; he worked for it. So he should spend whatever is necessary to try to beat this rap. Right?
The problem is, he’s been married for 20 years to Asha Pabla and he has 3 minor kids and elderly parents who are his dependents. And so it’s not Raj’s money. It’s his and his wife’s money. What is his money is his wife’s money kind of thing. Asha, Asha, Asha, stands to lose a lot of those assets if Raj is convicted. The government could seize a lot of their assets here in the U.S. and anywhere else they own assets where the U.S. courts have jurisdiction (not sure where that might be but you never know) and leave Asha all but destitute the way they did to Ruth Madoff.
If Rajaratnam beats the rap, Pabla still stands to lose a lot of their jointly owned assets because he’s been let out on what? $100 million bond? (Well, he gets that back if he is acquitted) but what if he’s convicted? He’s accused of making $20 million in illegal profits. He loses the bond, he has to pay restitution and then the legal fees will likely be in the millions. A lot of their assets down the drain. Plus, there are other lawsuits, one pending in Brooklyn right now, that he has to defend. He’s accused of having terrorist ties and a whole bunch of craziness.
These super lawyers don’t come cheap. In a way, it’s like a “dissipation” of marital assets this whole situation if you think about it; all these fees will dissipate the assets. Don’t get me wrong. If Asha were to, in the remotest of chances, move for divorce, no divorce judge is going to find that Raj “dissipated assets” in defending this law suit. He is entitled to a good defense and as I said, good defenses cost money.
My point about the amount he will have to spend is that it sort of is tantamount to a dissipation when I think about it. And it is Asha who loses according to my calculations.
But say what you want, I don’t think Asha will divorce him. No she won’t. She is not a woman who’s going to have Raoul Felder on speed dial. I mean, after all, not even his employees divorced him. That speaks volumes. This is definitely not a Madoff replay. In Madoff’s case, only Ruth stood by her man. Everyone else disappeared including his sons. In Rajaratnam’s case, even his employees went to court to support him. Says the Huffington Post:
Walden promised “there’s a lot more to this case” and his client was ready to prepare for it from home. Rajaratnam lives in a $10 million condominium with his wife of 20 years, their three (3) children and two elderly parents. Walden noted that many of his employees were in court ready to sign a bail package on his behalf.
Read more on the Rajaratnams here: http://www.divorcesaloon.com/?s=asha+pabla
Read more at: http://www.huffingtonpost.com/2009/10/16/raj-rajaratnam-charged-wi_n_323879.html