Greedy Indian chutiya Rajat Gupta is preparing himself for prison with the Federal Appeals Court for the Second Circuit in New York today rejecting his appeal against his conviction for insider trading and securities fraud by the U.S. District Court in 2012.
The 65-year-old multimillionaire with multiple homes in the U.S. will likely be lodged in a low-security prison for white collar criminals.
When Rajat Gupta goes behind bars, he will be the most high-profile Indian ever to enter an American prison.
Despite his 2012 conviction by the U.S. District Court, Gupta was permitted to remain free pending the outcome of his petition before the Appeals Court.
Now that Gupta has lost his appeal, he has almost zero options to avoid prison time.
Even if Gupta were to appeal to the U.S. Supreme Court the odds of his success are low because of the 9,000 odd petitions the highest court receives every year it accepts only about 80.
No date has been set for Gupta to be taken into custody to begin serving his prison term. One can only hope it’ll be sooner rather than later.
A perusal of the court documents reveal that Rajat Gupta acted illegally by passing on confidential corporate information about Goldman Sachs to his hedge fund buddy Raj Rajaratnam (who’s now serving a 11-year jail term). Gupta was a member of Goldman Sachs’ board in 2008 when the crimes were committed.
Rajat Gupta – Guilty
On June 15, 2012, a NYC jury found former McKinsey chief Rajat Gupta, 65, guilty of insider trading and convicted him on three counts of securities fraud and one count of conspiracy.
Gupta was a business partner of the jailed hedge fund billionaire Raj Rajaratnam and passed along confidential and market-moving inside information to Rajaratnam who then made huge amounts of money by illegally trading on those tips. Gupta was also an investor in Rajaratnam’s Galleon fund.
Following his conviction, U.S. District Judge Jed S. Rakoff sentenced Gupta to two years in prison and ordered him to pay a $5 million fine.
Gupta had challenged his conviction and filed a petition in the Appeals Court seeking a new trial.
Gupta argued that the trial court (District Court) erred (1) by admitting 19 statements of a co-conspirator (Raj Rajarathnam), recorded in wiretapped telephone conversations to which Gupta was not a party, and (2) by excluding relevant evidence offered by Gupta.
But the Federal Appeals Court did not buy into any of Gupta’s arguments in its 48-page ruling.
Just two years in a minimum security jail with fellow white collar offenders!
It will be like an all expense paid off site seminar for this crook to hobnob with fellow criminals and compare notes!
I would have thought the U.S would have been tougher with economic offenders!
One can only hope – and, of course, pray to Lord Balaji of the Seven Hills – that when the lights go off one of Rajat Gupta’s fellow offenders will make the IIT alumnus and former CEO of McKinsey his girlfriend!
That should compensate for the measly two-year term.
Lets not forget the other crime. Big corporate bosses paying loads of money to firms like McKinsey and Bain to tell them what to do while getting hired and drawing massive salaries for themselves because they are “Leaders” and know what to do.
The whole thing is a scam.
After spending his life doing this, its no wonder that he couldn’t let go of all that easy money, telling people obvious things with some nice charts and charging a lot for it.
Now telling one person some secret information and trying to make some money must have been a simple choice.
The only difference is one is legal and the other illegal.
If you ask me, much of this management consultancy thing is BS.
It’s like the CDOs (collateralized debt obligations), a BS artificial-instrument that Wall Street cooked up to show exceptional financial performance.
I can’t think of a single great idea that came out of these “suits & ties.”
Most novel products or services – eBay (online auction), Google (PageRank concept that was used initially), Amazon (e-commerce for books initially and then for everything else), iPhone (merging music, Internet & phone) etc – were all developed/catalyzed by single individuals.
What consultancies do best is to tell management to fire a shipload of people and jettison a bunch of so called non-performing divisions, or break up companies/add debt to purchases like Bain used to do.
Unfortunately the management consultancy scam’s working fine and dandy. 🙁