Thursday, 25 December 2014
Last updated 15 hours ago
Oct 24 2012 | 5:03pm ET
Rajat Gupta, the former head of consulting giant McKinsey & Co., was sentenced to two years in prison today for passing tips to Raj Rajaratnam.
Gupta had faced up to a decade in prison, and prosecutors had pushed for something more in line with the eight to 10 years called for by sentencing guidelines. But Gupta's lawyers had pushed for a no-jail sentence, arguing instead for probation and community service.
Gupta, who was convicted in June of passing tips gleaned during his service on the board of directors at Goldman Sachs and Procter & Gamble, was also fined $5 million.
"His conduct has forever tarnished a once-sterling reputation that took years to cultivate," U.S. Attorney Preet Bharara said. "We hope that others who might consider breaking the securities laws will take heed from this sad occasion and choose not to follow in Mr. Gupta's footsteps."
Gupta is a longtime friend and business partner of Rajaratnam. The Galleon Group founder was convicted of insider-trading last year and is serving an 11-year sentence. Gupta did not testify in Rajaratnam's trial, but was heard on a wiretap, which was also used against him at his own trial. Prosecutors also pointed to a call Gupta made just minutes after a Goldman board conference call to Rajaratnam, allegedly to tell him about an impending investment in the bank by Berkshire Hathaway.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.