By: Ezra Ashkenazi
In 2016, Sanjay Valvani was indicted by federal prosecutor for using private company information to swindle the stock market. Just days after he was indicted, Valvani committed suicide. His success at the Visium Asset Management company made him a health care industry star on Wall Street. Valvani graduated from Duke University and was at the firm to generate a substantial amount of money for his company. He emerged as Wall Street’s leading portfolio managers in the pharmaceutical sector.
Valvani earned over 30 million dollars per year, he also endowed a 250,000-dollar scholarship at his alma mater, and enormous houses in both New York and the Hamptons. VA Management don’t want his wife and children to be able to keep the money after all that Valvani has done to the company and to Wall Street. In his court papers it says, “It would be fundamentally unfair for Valvani’s past illegal activity… to be permitted to perpetuate a super-luxurious lifestyle for his spouse.” The asset management firm is represented by Irving Picard, who led a surreal effort to get back some of the money that Bernie Madoff lost in his infamous Ponzi scheme. Valvani’s widow, Harjot Sandhu, has sold their Brooklyn townhouse last month for $9.8 million.
Her lawyers say that the lawsuit is completely baseless, saying that, “It is particularly ironic that the same company that enabled, encouraged and profited from Mr. Valvani’s work is now coming after his estate.” Either way this case goes, it seems that Valvani’s widow and his two children will be taken care of by his former company, who says that the family will be provided for by a 10-million-dollar insurance trust from VA management. It seems like the company just doesn’t want all the illegal money that Valvani has made over his time in VA Management to be used to keep his family in an amazingly luxurious life. This scandal has definitely dragged this company’s name in the mud, so the money used to ruin their reputation shouldn’t be rewarded to the family of the man that did the dragging himself.