Former Goldman Sachs director Rajat Gupta caught a huge break yesterday as Southern District Judge Jed Rakoff sentenced him to two years in prison for feeding inside information to Galleon Group hedge fund founder Raj Rajaratnam.
Rakoff (See Profile) rejected a guidelines range of 78 to 97 months as an irrational result because it was driven by the amount of money involved in Rajaratnam’s trades and it was Rajaratnam, not Gupta, who made money on both bad and good news coming from within the secret confines of Goldman Sachs’ boardroom. The judge said two years was enough to send a message of deterrence to would-be insider traders.
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