No New Trial For Gupta

Mar 26 2014 | 10:40am ET

A federal appeals court in New York has rejected former McKinsey & Co. chief Rajat Gupta’s bid for a new trial.

Gupta was convicted in 2012 of passing tips about Goldman Sachs—where he served as a director—to Galleon Group founder Raj Rajaratnam. The jury in that case heard wiretapped conversations in which Rajaratnam, who has also been convicted of insider-trading, boasted about an unnamed Goldman insider feeding him information. Prosecutors had no tapes of talks between Rajaratnam and Gupta himself.

Gupta’s lawyers told the U.S. Second Circuit Court of Appeals that the wiretaps should not have been admitted in the trial. But none of the three judges on the panel hearing the appeal agreed, unanimously rejecting Gupta’s request for a new trial.

“We conclude that none of the challenged rulings constituted an abuse of the court’s discretion and that a new trial is unwarranted,” U.S. Circuit Judge Amalya Kearse wrote. The court added that there was “ample evidence” that Gupta was part of a criminal conspiracy involving Rajaratnam.

It is unclear whether Gupta plans to appeal the Second Circuit panel’s decision. Sentenced to two years in prison, he currently remains free on bail.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…