Rajat Gupta begins two-year jail term
Former Goldman Sachs director Rajat Gupta, who ran out of bail options last week, was set to begin a two-year term on Tuesday, possibly at a minimum security prison in Massachusetts.business Updated: Jun 18, 2014 02:01 IST
Former Goldman Sachs director Rajat Gupta, who ran out of bail options last week, was set to begin a two-year term on Tuesday, possibly at a minimum security prison in Massachusetts.
Born in Kolkata and raised in Delhi, Gupta is the highest-ranking executive convicted of insider trading from his tenure as director on board of Goldman.
Though convicted and sentenced in 2012, Gupta remained free on bail while he appealed his conviction, which was upheld in March by an appellate court in Manhattan.
Gupta had then entered another appeal, asking for his case to be re-heard, and approached the Supreme Court for bail to remain free for the duration of his appeal.
He lost that one too, on June 11.
Gupta, 65, was scheduled to surrender at the Federal Medical Centre Devens in the state of Massachusetts on Tuesday, according to local media reports.
But he was not at FMC Devens till the filing of this report, and the facility did not confirm if he was assigned to that prison.
If he has indeed been assigned to FMC Devens, he will probably be across the fence from a higher-security prison holding Raj Rajaratnam, the hedge fund billionaire.
Gupta was convicted of passing on inside information about Goldman Sachs to Sri Lankan-born Rajaratnam, who traded on them making — and avoiding losses of — millions.
As Gupta starts his sentence, he is also looking to mitigate fines and penalties levied on him — together about $19 million, including $5 million ordered by the trial judge.
The Securities and Exchange Commission slapped on him another $13.9 million, which, his lawyers argued before a appeals court on Monday, was too high.