Rajat Gupta Still Guilty Of The Thing He’s Been Guilty Of For Almost Seven Years

We can’t turn the clock back to June 14, 2012, and neither can the former McKinsey chief turned insider trader.
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By World Economic Forum [CC BY-SA 2.0], via Wikimedia Commons

By World Economic Forum [CC BY-SA 2.0], via Wikimedia Commons

Rajat Gupta is not allowed to serve on any boards of directors. And even if he could, it’s not likely there are too many publicly-traded companies eager to give Raj Rajaratnam’s former 23-second man a seat at the boardroom table. Even his oldest and closest friends don’t want to work with him. Long story short, the former McKinsey & Co. chief has got some free time on his hands. And he’s spending a lot of it on his chief hobby these days, which is clearing his name from that little insider-trading conviction that earned him the hospitality of the U.S. Bureau of Prisons for a couple of years.

He took up his new pastime around the time he moved to the federal prison camp in Ayer, Mass. In spite of nearlyfiveyears of practice, however, he’s still not very good at it.

Gupta, who was released from prison in 2016 after serving 19 months, argued that the conviction should be thrown out because U.S. prosecutors failed to prove he got a personal benefit for passing tips to his friend, billionaire hedge fund manager Raj Rajaratnam….

In the ruling on Monday, a three-judge panel rejected Gupta’s claims that he was actually innocent of the charges and disagreed that the jury was improperly instructed.

If at first (or fifth or whatever) you don’t succeed and all that. Plus, you know, life is a journey, and not a destination, even if that destination is as appealing as not being a convicted felon anymore. And since Rajat’s technically a Florida resident now, that doesn’t even mean he can’t vote anymore. Baby steps, buddy.

Rajat Gupta Fails to Have Insider-Trading Conviction Tossed [Bloomberg]


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's Lawyers May Try The "Everybody Was Doing It" Defense

There is much to like in this morning's Journal article about the Rajat Gupta insider trading prosecution, including a nice illustration of how the inside information that Gupta allegedly passed to Raj Rajaratnam actually seems to have been out in the market already. But let's start with the transcript of the call between Raj Rajaratnam and his trader Ian Horowitz, which the Journal has redacted not for confidentiality but for saltiness: Just so you can see Raj Rajaratnam saying "fuck" a lot, the full transcript of that call is here. But, anyway, the Journal story: