Rajat Gupta Faces 10 Year Prison Sentence
New York: Former Goldman Sachs Group Inc board member Rajat Gupta and one of the most accomplished corporate players from India is facing a decade in prison on charges of inside trading. Gupta, who is also a former head of management consultancy McKinsey & Co, is set to be sentenced on October 24 in US District Court in Manhattan. He was found guilty in June of leaking Goldman boardroom secrets to his hedge fund friend Raj Rajaratnam, who is now serving an 11-year prison term for insider trading.
Gupta, 63, is the most influential corporate figure to be caught in a broad insider trading crackdown of the last four years. His lawyers on Wednesday filed court papers asking he be spared prison, citing his years of charitable works, and suggested he be ordered to probation and community service instead.
The government said Gupta should get a significant prison term, saying his “crimes are shocking” and he time and time again flouted the law and abused his position of trust as a corporate board member.
“Although Gupta’s criminal conduct appears to represent a deviation from an otherwise law-abiding life, Gupta’s crimes were not an isolated occurrence or a momentary lapse in judgment,” assistant US attorney Richard Tarlowe wrote in the government’s filing. “Indeed, the opposite is true.”
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