Ex-Goldman director Rajat Gupta fails to void conviction

Tags: News
Former Goldman Sachs Group Inc director Rajat Gupta, serving a two-year prison term, has failed to persuade a federal appeals court to overturn his insider trading conviction.

In a brief order, the full 2nd US Circuit Court of Appeals in New York refused on Monday to disturb a March 25 decision by a three-judge panel of that court to let the June 2012 conviction stand. It did not explain its reasoning.

Gupta, 65, challenged the government's use of wiretap evidence against him, as well as the jury instructions by US District Judge Jed Rakoff in Manhattan, who oversaw his trial.

Gary Naftalis and Seth Waxman, two of Gupta's lawyers, were not immediately available for comment.

Gupta may still appeal to the US Supreme Court. He has also been fined millions of dollars.

The former global managing director of the consulting firm McKinsey & Co is the top corporate official convicted in the US probe of insider trading in the hedge fund industry. Jurors convicted Gupta of passing confidential information he learned at Goldman board meetings, including news about results and a crucial investment from Warren Buffett's Berkshire Hathaway Inc, to Raj Rajaratnam, founder of the Galleon Group hedge fund firm.

Rajaratnam, 57, is serving an 11-year prison term for insider trading. Last month, he failed to persuade the Supreme Court to review his own conviction.

Gupta and Rajaratnam are housed at FMC Devens, a medical facility and satellite camp about 40 miles (64 km) northwest of Boston. Rajaratnam's younger brother Rengan was acquitted in a separate insider trading case on July 8.

The case is U.S. v. Gupta, 2nd U.S. Circuit Court of Appeals, No. 12-4448.

EDITORIAL OF THE DAY

  • No ifs and buts, please, in India’s engagement with Iran

    Some foreign policy purveyors in this country have for long insisted that India does not leverage its civilisational connections as it should or is ca

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Urs Schoettli

New masters of the Financial Times

A few days ago, Japan’s leading financial daily Nihon Keizai ...

Anuja Sharma

Focus mindfully to get the result

Have you ever tried to light a fire using the ...

Gautam Gupta

Our fashion schools need to notch it up

“Creativity is the key to success and primary education is ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture