Rajat Gupta

[Crookbond]

That he was not punished for Insider Trading does not change the fact that he did commit the offence. He did break the law when he divulged confidential information to Rajarathinam who gained from it. This is not merely an unethical practice but illegal as well. The reason the judge went for breach of trust is that if he had followed the sentencing guidelines for insider trading, Rajat Gupta would have got 8-10 years which was deemed excessive in light of his philanthropic activities.

Thanks for the link. I still think there's a fine hazy line. Gupta convicted of breach of trust which facilitated insider trading. In my books, he is still convicted of "facilitating insider trading" which the judge wants to put it as "egregious breach of trust" by breaking a legal contract with Goldman Sachs.

Doshi: It is interesting you used those words 'egregious criminal act' because thatÃÔ what the judge says in his order. He says, "The heart of Mr. GuptaÃÔ offenses here, it bears repeating, is his egregious breach of trust. He also says that. Ūn the eye of the law, GuptaÃÔ crime was to breach his fiduciary duty of confidentiality to Goldman Sachs." So I am a little confused, what is Rajat Gupta being punished for here insider trading or breach of fiduciary duties because that breach is what occupies much of the order? Judge Rakoff "The heart of Mr. GuptaÃÔ offenses here, it bears repeating, is his egregious breach of trust." Pitt: Well in fact they are not separate issues. Insider trading requires either the stealing of somebody elseÃÔ information or a breach of fiduciary obligations. In this case, Mr. Gupta was a director of Goldman Sachs and yet despite his obligation to keep all of Goldman Sachs information confidential, he disclosed that information or so the court found and once you do that, you breach your fiduciary duty and you facilitate insider trading. So he was convicted of insider trading by virtue of his breach of fiduciary duty.

[ravishingravi]

Thanks for the link. I still think there's a fine hazy line. Gupta convicted of breach of trust which facilitated insider trading. In my books, he is still convicted of "facilitating insider trading" which the judge wants to put it as "egregious breach of trust" by breaking a legal contract with Goldman Sachs.

That probably would have been true if he had no business relationship with Rajratnam. It is insider trading. Money trail need not be established if there is circumstantial evidence.

[Sachin=GOD]

Rajat Gupta gets bail while in appeal Former Goldman Sachs director Rajat Gupta will remain free till his appeal against his conviction for insider trading is settled, which can take years. Gupta was to start serving a two-year prison sentence on January 8, following his conviction in June of three charges of securities fraud and one of fraud. The US second circuit court of appeal on Tuesday said Gupta can stay free till his appeal was settled. The former Goldman Sachs director left the court smiling. He was accompanied by his wife Anita and their four daughters. Gupta has been on free on $10 million bail since October 2011, when the charges were first brought against him. A jury found him guilty in June of passing on insider information about a Berkshire Hathaway investment in Goldman Sachs in September 2008 to Raj Rajaratnam. Rajaratnam is serving an 11-year prison sentence and his plea to remain free while his appeal was heard was turned down by another court. US courts usually allow white collar defendants to remain out of prison for the duration of this appeal unless there is a threat to security or the sentence is long. Gupta is likely to argue in his appeal that the trail court among other things improperly allowed recordings of telephone conversation between Rajaratnam and others. Gupta was not a participant in them. His defence team has argued that he was never close to Rajaratnam and that the two had fallen out. Gupta, they argue, lost $10 million he had invested with Rajaratnam. http://www.hindustantimes.com/business-news/CorporateNews/Rajat-Gupta-gets-bail-while-in-appeal/Article1-968651.aspx

[Sachin=GOD]

Rajat Gupta’s Lust for Zeros - http://www.nytimes.com/2013/05/19/magazine/rajat-guptas-lust-for-zeros.html?hp&_r=0&pagewanted=all This article is adapted from “The Billionaire’s Apprentice: The Rise of the Indian-American Elite and the Fall of the Galleon Hedge Fund,†to be published by Business Plus. definitely going to read this book once its launched.

[Sachin=GOD]

Rajat Gupta fined $13.9 million for insider trading

Former Goldman Sachs Indian-American board member Rajat Gupta, who was found guilty of tipping corporate secrets to jailed billionaire hedge-fund manager Raj Rajaratnam, has been fined $13.9 million in a related case. Gupta, 64, has also been permanently barred from serving as an officer or director of a public company and from associating with any broker, dealer, or investment adviser, the Securities and Exchange Commission announced here on Wednesday citing an order of a federal judge in New York. The top US regulator said it had previously obtained a record $92.8 million penalty against Galleon Group co-founder Rajaratnam, 56, for prior insider trading charges. Gupta was found guilty on June 15, 2012, of divulging confidential information to Rajaratnam about Berkshire Hathaway's $5 billion investment in Goldman Sachs as well as non-public details about the bank's financial results for the second and fourth quarters of 2008. In October, Gupta was sentenced to two years in prison and ordered to pay a $5-million criminal fine. He is free pending his appeal of the decision. "The sanctions imposed today send a clear message to board members who are entrusted with protecting the confidences of the companies they serve," said George S Canellos, co-director of the SEC's Division of Enforcement. "If you abuse your position by sharing confidential company information with friends and business associates in exchange for private gain, you will be prosecuted to the fullest extent by the SEC." The SEC said on December 26, 2012, that it obtained a final judgment ordering Rajaratnam to disgorge his share of the profits gained and losses avoided as a result of the insider trading based on Gupta's tips, plus prejudgment interest. In June Rajaratnam lost an appeal of his 2011 conviction for conspiracy and securities fraud. He was ordered to pay a record $92.8-million penalty in the SEC matter, and to forfeit more than $53.8 million and pay a $10-million fine in the criminal case. He is serving an 11-year prison sentence at the Federal Medical Centre Devens in Ayer, Massachusetts.

http://www.hindustantimes.com/business-news/CorporateNews/Rajat-Gupta-fined-13-9-million-for-insider-trading/Article1-1094305.aspx

[Sachin=GOD]

Rajat Gupta’s Lust for Zeros - http://www.nytimes.com/2013/05/19/magazine/rajat-guptas-lust-for-zeros.html?hp&_r=0&pagewanted=all This article is adapted from “The Billionaire’s Apprentice: The Rise of the Indian-American Elite and the Fall of the Galleon Hedge Fund,†to be published by Business Plus. definitely going to read this book once its launched.

just downloaded this. Looks very interesting....

[vvvslaxman]

http://dealbook.nytimes.com/2013/08/12/wall-st-debates-who-should-pay-legal-bills/ Who are going to pay the bills lol First Rajat GUpta, now Fabrice Tourre..