Gupta gets 2 yrs in jail, $5-mn fine

Last Updated: Wed, Oct 24, 2012 20:50 hrs

Former Goldman Sachs director Rajat Gupta was today sentenced to two years in prison and fined $5 million for insider trading by Manhattan US District Judge Jed Rakoff.

The 63-year-old Gupta arrived at court for his sentencing, accompanied by his lawyer. He allowed photographers to click pictures, telling his lawyer, “They’re just doing their job.”

The former Goldman Sachs Group Inc board member was convicted in June of leaking boardroom secrets to hedge fund manager Raj Rajaratnam, his friend and former business associate, at the height of the financial crisis. The former Goldman director, who also once ran the McKinsey & Co consulting firm and sat on the boards of Procter & Gamble Co and American Airlines, is the most influential corporate figure to be convicted in the recent crackdown on insider trading.

Indian-born Gupta had moved in elite business and philanthropic circles for decades until he became ensnared in the Rajaratnam case. Gupta’s lawyers requested that he be spared prison, citing his work with charitable groups.

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