Gupta's lawyer Gary Naftalis said the trial jury was not properly instructed regarding insider trading tips and the benefit accrued to Gupta. Preet Bharara nailed Mathew Martoma, who worked for hedge-fund billionaire Steven Cohen, getting him 9 years in prison for insider-trading.
The verdict came as a blow to Bharara and his team of federal prosecutors who have not lost a case in the years-long crackdown on insider trading on Wall Street. Rajat Gupta was convicted in after a jury trial of passing confidential information about Goldman Sachs to Rajaratnam. Gupta, 65, lost his final bid to avoid reporting to jail after the US Supreme Court last week denied his application to remain free on bail.
Gupta had filed his petition for rehearing his case before the Second Circuit appeals court in April and the court is yet to act on that petition. Gupta had challenged his conviction, contending that he is entitled to a new trial on the grounds that the trial court erred by admitting statements of a co-conspirator. India-born former Goldman Sachs director Rajat Gupta, who had lost his appeal to overturn his conviction on insider trading charges, has been ordered to surrender and begin his two-year prison sentence in June.
Last month the appeals court had upheld Gupta's conviction by a district judge on insider trading charges and denied his bid for a new trial. A federal appeals court rejected a bid by former Goldman Sachs Group Inc director Rajat Gupta to overturn his insider trading conviction. Have you read these stories?
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Paytm may not have much listing pop: Rajat Sharma Where to look for hidden gems in this market? ET NOW. Brand Solutions. Video series featuring innovators. ET Financial Inclusion Summit. Rajaratnam became a billionaire after co-founding Galleon and was perhaps the highest-profile figure ensnared in a years-long crackdown on insider trading at hedge funds.
Arrested in an early-morning FBI raid in October , he was in the first wave of defendants charged by federal prosecutors in New York, with dozens of other traders, executives and company insiders accused in the years that followed.
Rajaratnam was due to be released on July 4, , according to the BOP website. After 12 days of deliberations, a jury in New York found Rajaratnam guilty of 14 counts stemming from a seven-year plot to trade on inside information from corporate executives, bankers, consultants, traders and other insiders. The prosecution was one of the first insider-trading cases built on wiretapped telephone conversations, a tactic that until then was associated with organized-crime investigations.
Jurors heard more than 40 recordings of Rajaratnam, in some of which he could be heard gathering secrets from his sources. At Devens, Rajaratnam was one of 1, inmates in a facility surrounded by razor-wire fencing, with a perimeter patrolled by armed officers. In court papers filed before he was sentenced, Rajaratnam said he had health problems including diabetes. Richard Harbus. Raj Rajaratnam Richard Harbus Raj who? Share This Article.
The two ran into each other one day when Gupta was at the same Massachusetts prison complex. In one particularly revealing moment in the book, Gupta describes Rajaratnam as a petty hustler.
The most damaging, of course, was the July wiretapped conversation where Rajaratnam asked Gupta about a rumor that Goldman might buy a commercial bank. My comments were inappropriate, but not illegal. He was acquitted of two other charges. Later, when Gupta was moved to the main prison, he encountered Rajaratnam again.
We never discussed the case again. Had I been too driven, too busy, too focused on making a bigger impact? Gupta, now 70, still retains his capacity for imagination. In Abu Dhabi, Gupta told me, he and Milken chatted for about an hour in a conference room. Milken, however, remembers the meeting quite differently. Nor has he lost his entrepreneurial hustle.
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