Thursday, 24 July 2014
Last updated 1 hour ago
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.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…