Gupta Sentencing Today, Could Face 10 Years

Oct 24 2012 | 4:40am ET

As punishment for his insider-trading crimes, Rajat Gupta's lawyers have proposed an interesting sanction for the former McKinsey & Co. chief: a trip to Rwanda.

Gupta will be sentenced for passing confidential corporate information to his friend, Galleon Group founder Raj Rajaratnam, today. He faces up to a decade in prison, and while prosecutors are pushing for jailtime, Gupta's own lawyers have proposed probation and community service that could include work with the poor in Rwanda, or New York.

Gupta was convicted in June of passing tips to Rajaratnam. According to prosecutors, he acquired the information serving on the boards of directors of Goldman Sachs and Procter & Gamble.

Prosecutors pushing to send Gupta to prison noted that he was "at the pinnacle of a profession built on protecting client confidences," but "time and time again, over the span of nearly two years, Gupta flouted the law and abused his position of trust."

By contrast, Gupta's own lawyer wrote that he "has lived an exemplary life of uncommon accomplishment, compassion and generosity," and urged that he be allowed to continue to do so, working with needy children in New York or the poor in Rwanda.

Gupta is currently free on bail. He could seek to remain so even if he receives a prison sentence, pending appeal.


In Depth

Star Fund Managers Battered By Rocky Ride In Yields, Currencies

May 28 2015 | 6:05am ET

Some of the biggest names in the investment world have been whipsawed by the recent...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

The Road To Tax Alpha

May 28 2015 | 5:36am ET

Tax-related alerts are increasingly helping investment managers harvest tax alpha...

 

Sponsored Content

Editor's Note