NEW YORK: Former McKinsey managing director and Goldman Sachs board member Rajat Gupta, 65, who was sentenced in 2012 for insider trading, will start his two-year jail term from June 17.
Gupta, the highest profile Indian in corporate America till his fall from grace, was jailed for two years in June 2012 for passing on Goldman Sachs boardroom secrets to jailed Galleon hedge fund tycoon Raj Rajaratnam.
The Harvard-educated Gupta was free on bail pending his appeal against his conviction.
But on March 25, a court rejected his appeal for retrial.
Passing the order for Gupta’s surrender to jail authorities, US District Judge Jed Rakoff said, “Upon consent of the parties, the Court hereby orders the defendant to surrender for service of his sentence at the institution designated by the Bureau of Prisons not later than 2:00 p.m. on June 17, 2014.”
At Gupta’s request, the judge recommended that he should be kept at the federal prison in Otisville in New York. But it is up to the jail authorities.
Gupta was convicted on the basis of telephone records showing that he spoke to jailed Galleon hedge fund tycoon Raj Rajaratnam from telephones in the conference room where the Goldman Sachs board meeting had just ended in 2008. He tipped Rajaratnam that Warren Buffett’s Berkshire Hathaway Inc. was going to invest $5 billion in Goldman Sach. Gupta also passed secret details about quarterly results of Goldman Sach to Rajaratnam.
Gupta was jailed for two years, followed by one year of probation and also fined $5 million.
Gupta is an alumnus of IIT Delhi.