Former Goldman Sachs director Rajat Gupta has been sentenced to 2 years in prison after the US Court of Appeals rejected Gupta’s appeal against his conviction. Rajat Gupta was found guilty in 2012 of insider trading and conspiracy to commit a securities fraud. He was accused of relaying confidential information about Goldman Sachs to hedge fund founder Raj Rajaratnam.
This included information on Goldman’s results and a $5 billion investment by Warren Buffett’s Berkshire Hathaway. Earlier, the Security and Exchange Commission had requested the court to confirm the decision asking Gupta to pay a $13.9 million penalty and face a life ban as a company director. The former McKinsey boss is the most high profile prominent corporate executive to be convicted for insider trading.
Rajat Gupta's conviction implies a significant victory for the government, which is probing the Wall Street’s most reputed hedge funds and has reached the most prestigious US corporate boardrooms.