On a scale of 1 to 10, 1 being standard, 10 being elephantiasis, how big do you think the balls are on the guy who calls up a hedge fund manager 23 seconds after his meeting with fellow board members concludes to leak inside information about that company and then, after being convicted of securities fraud and conspiracy, tells the company, which paid his legal fees, he doesn’t owe them a dime? And that maybe if they put everything into an excel spreadsheet, he’ll think about tossing them a couple dollars, but probably not?
Mr. Gupta, 64 years old, was convicted earlier this year of sharing corporate secrets he learned as a Goldman board member with hedge-fund manager Raj Rajaratnam, his friend and business associate, including a $5 billion investment in the firm by Warren Buffett’s Berkshire Hathaway at the height of the financial crisis. Mr. Gupta was sentenced to two years in prison in October and is appealing his conviction. In connection with his sentencing, Goldman requested to be reimbursed $6.78 million, including legal fees and related costs as part of its internal probe and up to a quarter of his compensation as a Goldman director. Last month, a federal judge ordered Goldman to produce its billing records.
In a court filing Friday, Mr. Gupta’s lawyers the investment bank has failed to adequately show why it’s entitled to legal fees or more than $3 million in fees from before a criminal investigation against Mr. Gupta was active. “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,” said Richard J. Davis, a lawyer for Mr. Gupta…On Friday, Mr. Gupta’s lawyers argued that Goldman filed more than 500 pages of billing records for a three-year period between December 2009 and November 2012, but has failed to organize the work into categories or provide any breakdown of what fees are recoverable.
Gupta’s representation was the one to issue the formal response, though presumably he was present when the Goldman employee in billing came to collect, but pretty much just sat their cleaning his finger nails while the guy pleaded for their money back, looking up only to ask, “Do you like my new suit? It’s a legal expense.”
Rajat Gupta Says Goldman Hasn’t Justified $7 Million Fee Request [WSJ]