Monday, 20 October 2014
Last updated 3 hours ago
Dec 18 2012 | 11:05am ET
Convicted Raj Rajaratnam tipster Rajat Gupta isn't only fighting to avoid prison time—he's fighting to avoid paying Goldman Sachs, on the board of which he served and about which he was found guilty of passing tips to the Galleon Group founder.
Gupta, the former head of McKinsey & Co., formally objected to Goldman's demand that he pay almost $6.78 million to the bank. In a court filing Friday, Gupta said that Goldman failed to justify the request, seeking more than $3 million in legal fees from before a criminal probe, which ended with Gupta's conviction in June, began in earnest.
Gupta was sentenced in October to two years in prison but remains free pending an appeal.
At the time of the sentencing, Goldman asked a judge to order Gupta to pay $6.78 million, covering legal fees it said it incurred during the Gupta probe, as well as a quarter of Gupta's compensation for his time on Goldman's board. The judge ordered the bank to produce its billing records.
Those records are a mess, Gupta's lawyer suggested, not broken down into categories or into recoverable and non-recoverable fees. They also argued that most of the legal fees were incurred before the end of Rajaratnam's trial in May of last year.
"Simply stated, Goldman is entitled to restitution of only those fees it can demonstrate were necessarily incurred in connection with specific requests by the government," Gupta's lawyer wrote.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...