Rengan Rajaratnam
Rengan Rajaratnam embraces his lawyer Daniel Gitner as they exit the US District Court for the Southern District of New York in Lower Manhattan on 8 July. Reuters

Rengan Rajaratnam, brother of Raj Rajaratnam who was earlier convicted and jailed over a major insider trading scandal in the US, has settled civil claims against him filed by the US Securities and Exchange Commission (SEC).

Rengan Rajaratnam has agreed to pay more than $840,000 (€664,000, £524,000) and accept securities industry bars in order to settle the agency's insider trading case against him, the SEC said in a statement.

The settlement was filed on Thursday by the SEC in New York federal court. It is subject to the court's approval.

The SEC filed civil charges in March 2013 against Rengan Rajaratnam for his role in the widespread insider trading scheme conducted by Galleon Group founder Raj Rajaratnam. A federal jury in Manhattan acquitted him of all criminal charges earlier in 2014.

The insider trading occurred in securities of more than 15 companies for illicit gains totalling nearly $100m. Raj Rajaratnam is serving an 11-year prison sentence after being found guilty at trial in 2011.

Rengan Rajaratnam neither admitted nor denied the SEC's allegations in agreeing to the settlement, which bars him from association with any investment adviser, broker, dealer, municipal securities dealer or transfer agent. He may apply for re-entry in the securities market after five years.

"We are pleased to have reached a favourable proposed resolution of our insider trading charges against Rengan Rajaratnam," said Andrew Ceresney, director of the SEC's Division of Enforcement.

"The settlement ensures he's out of the industry and paying a serious price for breaking the law."

Rengan Rajaratnam has been a portfolio manager at Galleon after co-founding hedge fund advisory firm Sedna Capital Management.

The SEC said it has now obtained court judgments or settlements in Galleon-related enforcement actions against 35 defendants, resulting in about $165m in monetary sanctions.