Rajat Gupta's conviction on insider trading upheld by US court

Bs_logoImage
Press Trust of India New York
Last Updated : Mar 25 2014 | 9:10 PM IST
India-born former Goldman Sachs director Rajat Gupta was today sentenced to two years in prison after his bid to overturn his conviction on insider trading charges rejected by a US court.
The US Court of Appeals for the Second Circuit in its order rejected Gupta's appeal against his conviction and said, "We have considered all of Gupta's arguments on this appeal and have found them to be without merit. The judgement of the district court is affirmed," the order said.
65-year-old Gupta was found guilty in June 2012 of securities fraud and conspiracy to commit securities fraud.
He was charged with passing confidential boardroom information about Goldman Sachs to now jailed hedge fund founder Raj Rajaratnam.
This information included information on Goldman's financial results, as well as a crucial USD 5 billion investment by Warren Buffett's Berkshire Hathaway Inc .
Earlier this week, US regulator Security and Exchange Commission had asked the court to affirm a district court's decision that Gupta pay a USD 13.9 million penalty and be banned for life from serving as director of a public corporation.
Gupta, the former head of McKinsey & Co, the global consulting firm, is the most prominent corporate executive convicted in the government's sweeping investigation into insider trading.
The case, which caps a wave of successful insider trading prosecutions over the past years, is a significant victory for the government, which has penetrated some of Wall Street's most vaunted hedge funds and reached into America's most prestigious corporate boardrooms.

You’ve reached your limit of 10 free articles this month.
Subscribe now for unlimited access.

Already subscribed? Log in

Subscribe to read the full story →
Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

70% off

Smart Essential

₹810

1 Year

₹67/Month

70% off

Super Saver

₹1,170

2 Years

₹48/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories

  • Over 30 subscriber-only stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Mar 25 2014 | 9:10 PM IST