Rajat Gupta, a former board member at Goldman Sachs was sentenced on Wednesday to two years in prison for insider trading.
October 26, 2012- Rajat Gupta, a former board member at Goldman Sachs was sentenced on Wednesday to two years in prison for insider trading. His conviction is the highest profile case to date in the ongoing crackdown by the U.S. government.
The sentencing on Wednesday marked the culmination of one of the most stunning falls from grace. Gupta served on the boards of Proctor & Gamble as well as Goldman Sachs and was the head of McKinsey & Co, a marquee consulting business. He also was the chair of The Global Fund, a public health organization.
Over 400 letters were received by the court supporting Gupta prior to his sentencing. His supporters included Bill Gates the founder of Microsoft and Kofi Annan the former Secretary General of the United Nations.
Gupta was convicted in June of leaking Goldman Sachs information from its board meetings in 2008 to Raj Rajaratnam a manager of a hedge fund. Rajaratnam just began his 11-year sentence last year for insider trading.
Gupta spoke in court at his sentencing saying the months since he was arrested in 2011 have been some of the most challenging of his life. He said he regretted the impact it has had on his family and friends as well as the institutions that are dear to him.
Gupta was never accused of directly profiting from tipping off his friend, though the judge said Gupta viewed it as a way to future benefits and opportunity.
Like other recent cases of insider trading, prosecutors relied partially on wiretaps for their evidence. That is something that until now has not been used traditionally in these types of cases and has proven to be very controversial in the recent governmental crackdown on insider trading.
Gupta’s defense attorneys said that he plans to appeal. He is not due to start his prison term until January and will remain free until then.