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Wed October 24, 2012
Rajat Gupta, Former Goldman Sachs Director, Sentenced To Two Years
Rajat Gupta, who was once a director at Goldman Sachs and Procter & Gamble, has been sentenced to two years in prison, after a federal jury convicted him of insider trading.
Gupta was convicted of leaking information to Galleon Rajaratnam, the billionaire co-founder of Galleon Group who was found guilty of fraud and conspiracy.
"Mr. Gupta, 63, who ran the consulting firm McKinsey & Company and served as a top adviser to the foundations of Bill Gates and Bill Clinton, is the most prominent figure to face prison in the government's sweeping crackdown on insider trading. He was also ordered to pay a $5 million fine.
"In a statement, the United States attorney in Manhattan, Preet Bharara, said of Mr. Gupta, 'His conduct has forever tarnished a once-sterling reputation that took years to cultivate.'
"'We hope that others who might consider breaking the securities laws will take heed from this sad occasion and choose not to follow in Mr. Gupta's footsteps,' the prosecutor added."
Gupta is scheduled to report to prison on Jan. 8. CNBC reports he read a statement, saying the past 18 months have been "the most challenging period of my life since I lost my parents as a teenager."
He continued: "I regret terribly the impact of this matter on my family, my friends and the institutions that are dear to me. I've lost my reputation I built for a lifetime. The verdict was devastating."