Rajat Gupta sentenced to 2 years for insider trading
Rajat Gupta is headed to prison.
October 25, 2012 at 06:24 AM
3 minute read
The original version of this story was published on Law.com
Rajat Gupta is headed to prison.
Yesterday, U.S. District Judge Jed Rakoff sentenced the 63-year-old former Goldman Sachs Group Inc. board member and head of McKinsey & Co. to two years in prison for his insider trading crimes, which he called “disgusting” and “a terrible breach of trust.” Rakoff also ordered Gupta to pay a $5 million fine.
In June, a jury convicted Gupta of insider trading for passing confidential Goldman Sachs financial information to Galleon Group hedge fund co-founder Raj Rajaratnam, who was sentenced to 11 years in prison last October for insider trading. Gupta faced a maximum sentence of 25 years in prison.
Earlier this month, 400 of Gupta's friends, family and some prominent philanthropists in the business world—including Microsoft Corp. Chairman Bill Gates and former United Nations Secretary General Kofi Annan—wrote letters to Rakoff beseeching him to be fair when he sentenced Gupta. They noted that Gupta has a reputation as a family man and a history of involvement in philanthropy, including involvement in the Global Fund to Fight AIDS, Tuberculosis and Malaria.
During the sentencing proceedings, Rakoff said Gupta's crimes were “the functional equivalent of stabbing Goldman in the back.” Nonetheless, he said he had “never encountered a defendant whose past history suggests such an extraordinary devotion … to people in need.”
Gupta will begin his sentence on Jan. 8, 2013. Judge Rakoff denied Gupta's lawyer's bid to have him freed on bail pending an appeal.
Read Bloomberg Businessweek and Thomson Reuters for more about Gupta's sentencing.
For more InsideCounsel coverage of Gupta's insider trading, read:
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View All
Financial Watchdog Alleges Walmart Forced Army of Gig-Worker Drivers to Receive Pay Through High-Fee Accounts
GC Pleads Guilty to Embezzling $7.4 Million From 3 Banks
In Lawsuit, Ex-Google Employee Says Company’s Layoffs Targeted Parents and Others on Leave
6 minute read
GC With Deep GM Experience Takes Legal Reins of Power Management Giant
2 minute readTrending Stories
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250
