Rajat Gupta

  • 17 Jun 2014 at 3:23 PM

Civil Penalty Watch ’14: Rajat Gupta

Ex-Goldman Sachs board member Rajat Gupta reported to prison earlier today for, among other things, being unable to wait more than 23 seconds to spill material non-public information to now-known insider trader Raj Rajaratnam. Also, he needs to come up with about $24.9 million, if anyone’s feeling generous. Read more »

On Tuesday, Rajat K. Gupta, the former managing director of the consulting firm McKinsey & Company who was convicted of insider trading, is scheduled to report to a minimum-security prison camp in Massachusetts, spending the next two years not far from his one-time friend and partner in crime, Raj Rajaratnam…In an interesting twist, Mr. Rajaratnam, the man to whom Mr. Gupta was convicted of giving corporate secrets on a raft of companies, including Goldman Sachs, is in FMC Devens’ federal medical center. Mr. Rajaratnam, the founder of New York hedge fund Galleon Group, is a diabetic and FMC Devens’ medical unit provides dialysis. His facility is next to the satellite camp where Mr. Gupta will be. One of the differences between the two prisons is that Mr. Rajaratnam has slightly longer visiting hours. On Fridays, he can mix with friends and family from 8:30 a.m. to 3 pm; Mr. Gupta can receive guests only from 2:30 p.m. to 8:30 p.m. [Dealbook]

Rajat Gupta, the Goldman Sachs director who waited but 23 seconds after a Goldman board meeting to call hedge fund manager Raj Rajaratnam with material, non-public information, has lost his bid to stay out of jail. Read more »

Rajat Gupta, the former Goldman Sachs Group director convicted in a 2012 insider trading scheme tied to the Galleon Group LLC hedge fund, agreed to surrender to prison authorities on June 17 to begin a two-year sentence, a federal judge in Manhattan said. Gupta, 65, lost a bid for a new trial last month, when a three-judge appeals panel upheld his conviction. U.S. District Judge Jed Rakoff said in an order made public today that Gupta and prosecutors consented to the surrender date. [Bloomberg]

…and that $13.9 million in civil penalties, on top of the two years in prison he’s supposed to serve after being convicted of insider trading, plus the scratch he owes Goldman for sharing its material non-public information with a hedge fund friend, is taking things too far. Read more »

Apparently this came as a surprise to Rajat Gupta. Read more »

Whether your destination is a minimum-security white-collar resort or federal pound-me-in-the-ass prison, you are going to need to get used to life without dwarf-tossing or three-ways with underage girls or taser games and $15,000 umbrella stands. This Goldman Sachs alum can help. Read more »

Which seems fair? Read more »