Rajat Gupta, the India-born former CEO of Mckinsey and board member, Goldman Sachs, deserves 8- 10 years in prison for insider-trading crimes, government prosecutors have said in court papers.
Gupta is to be sentenced on October 24 by a Manhattan court. He was found guilty in June of leaking boardroom secrets to Raj Rajaratnam, his friend and CEO of Galleon Hedge Fund. Raj Rajaratnam is in jail on an 11-year term for the same offence. Gupta faces a potential sentence of 20 years or more, though such a long sentence seems unlikely. The sentence will be handed down by U.S. District Judge Jed Rakoff, who had presided over his trial.
Interestingly, the prosecution side is led by Preet Bharara, a prominent US attorney of Indian origin, whose team had cracked the sensational case and mounted clinching evidence to prove Gupta's active invovlement.
Rajat Gupta is the most influential corporate figure to be caught in a broad insider trading case in the last four years. His lawyers have pressed for exemption from prison, citing his otherwise “unblemished record” and charitable work and suggested probation and community service.