Raj Rajaratnam’s former friend and current neighbor got some more bad news from the courts today: The ruling that’s putting insider-traders back on the street all across the Second Circuit won’t have him back on high thread-count sheets in Westport tonight. That’s great news for his lawyers, who will now have just enough time to appeal mean ol’ Jed Rakoff’s ruling to the very same Second Circuit setting Raj’s cohorts free, lose there because, as mean ol’ Jed says, “the Supreme Court has repeatedly made clear” that calling your buddy 23 seconds after you get out of a board meeting to spill the beans on said meeting is a crime, seek a rehearing before the full court and fail, and petition the Supreme Court for the third very expensive time to no avail—all before Rajat gets out on March 13 next year.
Gupta, 66, convicted in 2012 and now serving a two-year prison term in Massachusetts, argued that he should be released because the U.S. failed to prove he got a personal benefit for passing tips to his friend, billionaire hedge fund manager Raj Rajaratnam….
Rakoff on Thursday rejected Gupta’s arguments, saying his circumstances were different….
The judge cited evidence including conversations secretly recorded by the U.S. that showed Gupta passed nonpublic information to Rajaratnam, with whom he had a business relationship.