Sunday, 25 January 2015
Last updated 2 days ago
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.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…