Gupta Judge Known For Ignoring Sentence Recommendations

Jun 18 2012 | 2:39pm ET

Rajat Gupta may be hoping Jed Rakoff will run true to form when the U.S. district judge sentences him this fall.

Rakoff is known for trimming the sentences recommended by prosecutors in insider trading cases such as that involving the former McKinsey & Co chief executive.

Last September, according to a survey of Rakoff’s rulings done by Bloomberg News, Rakoff sentenced hedge fund consultant Winifred Jiau to four years in prison, rather than the 10  sought by federal prosecutors, for her role in selling confidential information to Galleon Group co-founder (and convicted fraudster) Raj Rajaratnam. Rakoff also gave two of Jiau’s colleagues probation instead of jail.

The judge gave Primary Global Research executive James Fleishman a 30-month term instead of the up to 108 months sought by prosecutors. Former SAC Capital Advisors manager Donald Longueuil also received a 30-month term instead of the 46-57 months sought by the prosecution and Manosha Karunatilaka, a former Taiwan Semiconductor Manufacturing Co. manager, was sentenced to 18 months in prison by Rakoff, instead of 37- to 46-month term sought by the government.

Gupta was found guilty of securities fraud and conspiracy on Friday. The former, more serious, charge carries a maximum penalty of 20 years.

He will be sentenced on October 18.

 


In Depth

Q&A: Omni Macro Fund Bullish On India, Watching China

Mar 4 2015 | 3:35pm ET

Omni Macro Fund was formed in 2007 by Stephen Rosen, previously a prop trader at...

Lifestyle

Hedge Fund Manager Out as Minnesota Wild Minority Owner

Feb 25 2015 | 2:45pm ET

New York hedge fund manager Philip Falcone is no longer a minority owner of the...

Guest Contributor

Risk Management: The Due Diligence Challenge And Branding Opportunity

Mar 2 2015 | 8:41am ET

The hedge fund firms that make it easier for prospective investors to gain comfort...

 

Editor's Note