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

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

As initial anxiety over Donald Trump’s victory gave way to market euphoria in the days following the election, there was a casualty. Gold prices.