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

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of