Wall Street tycoon Rajat Gupta gets 2 years in jail for Insider Trading.
Fallen Indian-American Wall Street tycoon Rajat Gupta has been sentenced to two years in prison and ordered to pay a $5-million fine by a US judge who termed Gupta’s insider trading crimes as “disgusting” and a “terrible breach of trust’’.
The Indian Institute of Technology (IIT) and Harvard-educated former Goldman Sachs director would have to surrender to a designated prison on January 8, next year.
The US District Judge denied Gupta’s request to remain free on bail while he appeals his case as a court could have taken about two years or more to rule on Gupta’s appeal.
On multiple occasions the US District Judge Jed Rakoff gave credit to Gupta for his life of philanthropic works. The Judge said “He is a good man.”
“But the history of this country and the history of the world are full of examples of good men who did bad things,” the judge added.
Rakoff said the evidence that Gupta passed illegal information about Goldman Sachs to now-jailed hedge fund founder Raj Rajaratnam was “not only overwhelming, it was disgusting in its implications… It was a terrible breach of trust’’.
“In the eye of the law, Gupta’s crime was to breach his fiduciary duty of confidentiality to Goldman Sachs; or to put it another way, Goldman Sachs, not the marketplace, was the victim of Gupta’s crimes as charged,” the judge said.
Before the judge gave his verdict, the fallen corporate honcho made his first comments in court, reading from a prepared statement and expressing regret over letting his family and colleagues down.
At the end of the court’s proceedings, Gupta smiled as he shook hands and hugged his team of defence lawyers.
Surrounded by his family, he said he had no comment on the sentence as he walked out of the courtroom.