Rajat Gupta guilty of insider trading, may get 25 yrs
A Manhattan jury on Friday found former Goldman Sachs board member Rajat Gupta guilty of insider trading, convicting him on three counts of securities fraud and one of conspiracy.business Updated: Jun 16, 2012 01:59 IST
A Manhattan jury on Friday found former Goldman Sachs board member Rajat Gupta guilty of insider trading, convicting him on three counts of securities fraud and one of conspiracy.
Securities fraud carries a maximum of 20 years each and conspiracy five. Sentencing is fixed for October 18.
Prosecutors had charged Gupta — born in Kolkata and educated in Delhi’s Modern School and IIT, and later Harvard — with leaking inside information to his hedge-fund manager friend Raj Rajaratnam.
Rajaratnam, founder of the $7-billion Galleon hedge fund, is serving an 11-year jail term after his conviction last October.
The verdict marks a stunning fall for Gupta, 63, also a former top executive at McKinsey & Co and a former Procter & Gamble director.
“Rajat Gupta once stood at the apex of the international business community. Today, he stands convicted of securities fraud,” chief prosecutor Preet Bharara said. “Having fallen from respected insider to convicted inside trader, Mr Gupta has now exchanged the lofty board room for the prospect of a lowly jail cell.”