NEW YORK.- The former Goldman Sachs Board member, as well as head of McKinsey & Company, was found guilty today for insider trading in a Manhattan federal court. The retired 63-year old was found guilty of conspiracy and securities fraud.
U.S. attorney in Manhattan, Preet Bharara, said, "Having fallen from respected insider to convicted inside trader, Mr. Gupta has now exchanged the lofty board room for the prospect of a lowly jail cell," as reported by the New York Times.
Last year, Gupta was implicated in the Rajaratnam case for leaking business secrets and confidential information to his friend and associate Rajaratnam on three different occasions in 2008. Rajaratnam, ex-hedge fund manager of the Galleon Group management firm, was convicted on 14 counts of insider trading and was handed down a jail sentence of 11-years, the longest prison-term for insider-trading in the country's history.
Gupta pleaded not guilty. His lawyer, Gary P. Naftalis, said, "Having lived a lifetime of honesty and integrity Naftalis...he didn't turn into a criminal in the seventh decade of an otherwise praiseworthy life," as reported by the New York Times, Naftalis was referring particularly to Gupta's role in various charities and humanitarian causes.
The trial went on for about four weeks with a day of jury deliberation. Judge Jed Rakoff announced the verdict and set the sentencing for October 18. Gupta can face up to 25 years in prison, however it is likely that he will be given a lesser sentence. Gupta was released on bail and will spend all his time before his sentencing a freeman.
Gupta is one of the 66 executives and traders that the U.S. government began to crack down on since 2009.
