Sat, Aug 13, 2022
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Court upheld Rajat Gupta’s insider trading conviction and prison sentence

Friday, July 03, 2015

Komfie Manalo, Opalesque Asia:

U.S. District Judge Jed Rakoff on Thursday upheld the two-year prison term against former Goldman Sachs Group director Rajat Gupta and rejected his appeal to dismiss his insider-trading conviction by a New York federal jury in 2012.

The 66-year-old Gupta asked the court to reverse his conviction after an appeals court ruled in December 2014 that prosecutors must establish that a person who provided an inside tip must receive personal benefits for leaking a secret information. The appeals court ruling has resulted in several convictions obtained by Manhattan U.S. Attorney Preet Bharara to be overturned later, reported Bloomberg.

In his appeal, Gupta, the highest-ranking executive convicted in the on-going crackdown on insider trading at hedge funds, told Rakoff that prosecutors failed to prove that he gained personal benefits from passing inside information to his friend, billionaire hedge fund manager Raj Rajaratnam about the $5bn investment of Berkshire Hathaway in Goldman Sachs as well as tips on the bank’s finances for two quarters in 2008.

The convicted former Goldman Sachs director said the federal jurors also failed to prove that the tips he provided Rajaratnam gave him "consequential benefits," therefore his action is no longer a crime based on the appeals court ruling.

But Rakoff said......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: ESG exuberance is at all-time highs. But will investors buy?[more]

    As investors increase their focus on mission-based investing, they continue to grapple with ESG and what it means to them. By David Shalom, Director of Capital Introductions at Pershing Innovation. New investment solutions. That's how managers deliver value and attract new inve

  2. Alts managers sitting on over $2.5tn+ of dry powder[more]

    Laxman Pai, Opalesque Asia: In the current rising interest rate environment, investment activity in the private markets has continued to grow, revealed a study. "With alts managers sitting on over $2.5T+ of dry powder and continuing to enjoy premium valuations and interest rates on a prec

  3. Opalesque Exclusive: Hong Kong manager expects additional tailwind in Asian markets[more]

    B. G., Opalesque Geneva: The Asia equity markets have not been at their best so far this year, with the MSCI Asia index down almost 13% YTD, but many managers remain buoyant about the region, as in

  4. Opalesque Exclusive: Emerging markets persist despite headwinds[more]

    Bailey McCann, Opalesque New York: Emerging markets have been under significant pressure since the start of the year, but there are some nascent trends that suggest that things could be getting better. Emerging markets firm Gramercy Fund Management recently released its third quarter outlook and

  5. Opalesque Exclusive: Castle Hall's DiligenceExchange free Transparency Reports cover 100 managers with $10tn of assets[more]

    Matthias Knab, Opalesque for New Managers: Managers and investors can get free access to DiligenceExchange here: https://bit.ly/DXCInfo Castle Hall, the Du