Gupta Objects To Goldman Bill

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.


In Depth

Q&A: Filippo Pignatti Morano On The Ultimate Alternative Investment...Classic Cars

Jan 29 2015 | 12:37pm ET

In 2011, Filippo Pignatti Morano launched a fund to invest in classic cars. FINalternatives...

Lifestyle

Looking For A Hedge Fund Manager? Try Davos

Jan 28 2015 | 8:48am ET

Davos, Switzerland seems to have become the hedge fund capital of the world—at...

Guest Contributor

Five Tips For Successfully Marketing Your Hedge Fund

Jan 30 2015 | 9:14am ET

When it comes to the hedge fund industry, the notion of “build it and it will...

 

Editor's Note