Ex-Goldman Sachs director Rajat Gupta sentenced to two years in jail

Last Updated: Thu, Oct 25, 2012 05:31 hrs

Former Indian-American Goldman Sachs director, Rajat Gupta, who was found guilty of four criminal counts of insider trading, has been sentenced to two years in jail.

He was accused of leaking boardroom secrets to Raj Rajaratnam, a former hedge fund manager who is now serving an 11-year sentence in prison.

Gupta, 63, who has also been ordered to pay a five million dollar fine by a US court dealing with case, said he was devastated by the verdict.

"The last 18 months have been the most challenging period of my life since I lost my parents as a teenager. I've lost my reputation I built for a lifetime. The verdict was devastating," the BBC quoted Gupta, as saying.

According to the report, the trial, which resulted in Gupta being found guilty in June this year, primarily focused on a phone call made to Rajaratnam on 23 September 2008, minutes after Gupta had listened to a private conference call discussing a five billion-dollar investment in Goldman Sachs by Warren Buffett's company Berkshire Hathaway.

The phone records revealed that Rajaratnam bought 40 million dollars in Goldman Sachs stock moments after the phone call, earning nearly one million dollars, the report said.

Gupta, who was born in India and is a Harvard alumni, also served on the boards of Procter and Gamble, the Rockefeller Foundation and the Bill and Melinda Gates Foundation, the report added. (ANI)

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