Rajat Gupta’s Massachusetts Trip Isn’t Over Yet

The federal prison in Devens, MA is still hope for the time being.

Home, sweet home, for now.

For the second time this year, the U.S. Supreme Court had disappointing news for the former McKinsey chief, viz.: He isn’t such a good guy that any jury finding him guilty of a crime must be reversibly crazy. So Rajat’s got a few more months to kill in lovely Devens, Mass., trying to avoid the so-called friend who got him into this mess in the first place by answering that call he made 23 seconds after that Goldman board meeting broke up, unless the wise and merciful Jed Rakoff doesn’t think his crime is a crime anymore.

Mr. Gupta, the former head of consulting firm McKinsey & Co., argued in a petition to the Supreme Court that Judge Rakoff’s jury instructions didn’t give proper weight to testimony from character witnesses who said Mr. Gupta had lived an honest and exemplary life in both his personal and professional affairs.

Mr. Gupta had sought a jury instruction saying that such character evidence alone could be enough to create a reasonable doubt that he committed the offenses…..

The Supreme Court rejected Mr. Gupta’s appeal in a brief one-line order that offered no comment on the case.

Supreme Court Turns Away Gupta Appeal [WSJ]
Supreme Court rejects Rajat Gupta’s insider trading appeal [Reuters]


The Universe Has Good News And Less Good News For Rajat Gupta

The less good news is that a jury found the former McKinsey executive guilty on three counts of securities fraud and one count of conspiracy for passing material non-public information to his friend*, convicted insider trader Raj Rajaratnam. The good news: 1. Rajat could go to jail for twenty years but probably won't ("Gupta faces up to 20 years in prison on each of the fraud charges and up to five years for the conspiracy charge. But his sentence is likely to be significantly lower under federal guidelines.") 2. Sentencing is scheduled for October 18 so he's got the whole summer and then some into a Zen place about going to prison. Also! Plenty of time to do all those things he was too busy for when he was working. This is gonna be his time. Time to taste the fruits and let the juices drip down his chin. The summer of Rajat! Gupta Found Guilty Of Insider Trading [WSJ] *Friend Rajat's ass.

Rajat Gupta Wants To See Goldman Beg For It

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?