BOSTON, May 8 (Reuters) - A former correctional
counselor at a federal prison in Massachusetts was sentenced on
Wednesday to two years in prison for corruptly accepting tens of
thousands of dollars from a wealthy inmate identified by a
source as Galleon Group hedge fund founder Raj Rajaratnam.
U.S. District Judge William Young in Boston rejected a
request by William Tidwell, 50, for a more lenient sentence,
calling the corruption he engaged in while at the Federal
Medical Center Devens in Ayer, Massachusetts "intolerable."
Prosecutors said that corruption involved accepting over
$90,000 in payments through an arrangement with an "ultra-high
net worth" inmate under Tidwell's care in exchange for giving
him favorable treatment.
"The conduct for which you stand convicted cuts to the very
heart of our justice system," Young said. "It's corruption of
the most dangerous sort."
Young ordered Tidwell to forfeit the $90,000 and pay a
$10,000 fine. In court, the New Hampshire resident apologized
for his actions, saying he owned his mistake.
No one in court identified the wealthy inmate by name. But a
person familiar with the matter has previously confirmed he was
Rajaratnam, who was convicted and sentenced in 2011 to 11 years
in prison for insider trading and was released early in 2019.
Prosecutors have said Rajaratnam, the founder of the New
York-based Galleon Group, made as much as $63.8 million in
illicit profit from 2003 to 2009 trading on stocks including
eBay ( EBAY ), Goldman Sachs ( GS ) and Google.
No charges have been filed against Rajaratnam in relation to
Tidwell's case. Rajaratnam's lawyer, Samidh Guha, has said he
would "cooperate appropriately with the government if and when
they reach out to us." Guha declined comment on Wednesday.
Tidwell pleaded guilty in September to charges that he
received payments in violation of his official duties, made
false statements to a bank and committed identity theft.
Prosecutors said Tidwell, beginning in 2018, received a
stream of financial benefits from the inmate and one of his
close friends.
Those benefits included $25,000 to help pay off loans for a
family member and more than $65,000 in fees and other benefits
to help manage certain properties, including one in which
Tidwell lived, according to charging documents.
After the inmate's release from prison, Tidwell in 2020
received a $50,000 loan from the ex-inmate's friend to buy a
house. Prosecutors said he lied on a bank loan application about
the source of that money.