Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Ex-Goldman director Gupta starts prison term on June 17

Published 17/04/2014, 22:25
GS
-

By Jonathan Stempel

NEW YORK (Reuters) - Former 1:GS director Rajat Gupta is expected to begin his two-year prison term on June 17 for insider trading.

U.S. District Judge Jed Rakoff in Manhattan directed Gupta to surrender by 2:00 p.m. EDT (7 p.m. London time) on that date to start serving his sentence, according to an order issued on Thursday.

Gupta, 65, was convicted in June 2012 on securities fraud and conspiracy charges for having fed tips, from Goldman board meetings in the second half of 2008, to longtime friend Raj Rajaratnam, founder of the Galleon Group hedge fund firm.

A three-judge panel of the 2nd U.S. Circuit Court of Appeals upheld the conviction on March 25, rejecting Gupta's claim that Rakoff improperly admitted wiretap evidence at trial.

Two weeks later, on April 8, Gupta asked the panel to reconsider, or for the entire 2nd Circuit to review the case.

Gary Naftalis, a lawyer for Gupta, did not immediately respond to a request for comment.

Gupta is also a former global managing director of the consulting firm McKinsey & Co. He is the top corporate official convicted in a broad federal insider trading probe unveiled in October 2009, when charges against Rajaratnam were announced.

It is unclear where Gupta will serve his sentence. Rakoff agreed to recommend that he be assigned to a medium security prison in Otisville, New York, about 70 miles (113 km) northwest of New York City. The Federal Bureau of Prisons will make the decision. That agency did not return a call seeking comment.

Rajaratnam is appealing his own conviction to the U.S. Supreme Court. He is serving an 11-year prison term.

The government has won about 80 convictions and guilty pleas in the insider trading probe.

On April 11, a federal judge approved a guilty plea by Steven Cohen's SAC Capital Advisors LP to resolve criminal insider trading charges, including a $1.2 billion penalty.

The case is U.S. v. Gupta, U.S. District Court, Southern District of New York, No. 11-cr-00907.

(Reporting by Jonathan Stempel in New York; Additional reporting by Nate Raymond; Editing by Bernadette Baum and Marguerita Choy)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.