Supreme Court rejects appeal by ex-Goldman Sachs director
US Supreme Court decision on ex-Goldman Sachs director
The US Supreme Court on Monday rejected an appeal by Rajat Gupta, the former Goldman Sachs director convicted of insider trading. This rejection leaves in place a lifetime ban on serving as an officer or director of a public company and stems from the civil case against Gupta by the Securities and Exchange Commission. Last June the US Court of Appeals for the Second Circuit upheld a district court ruling that imposed permanent injunctive relief and a $13.9 million civil penalty on Gupta. The penalty was not at issue in the appeal.
Gupta’s appeal to the Supreme Court concerning his criminal conviction is still pending. Last March the US Court of Appeals for the Second Circuit affirmed Gupta’s conviction of insider trading. Gupta was convicted of three counts of securities fraud and one count of conspiracy to commit securities fraud in June 2012, primarily upon the basis of statements he made by phone to Raj Rajaratnam, head of the Galleon Group hedge fund firm, informing him of Goldman Sachs’ investments and financial results. The district court sentenced Gupta to two years in prison, one year of supervised release and a $5 million fine. The Second Circuit affirmed the conviction of Gupta’s co-conspirator Rajaratnam in June 2013. Rajaratnam was convicted by the US District Court for the Southern District of New York in May 2011 and sentenced to fines totaling almost $64 million and 11 years in prison, the longest sentence ever handed down for insider trading.
Source: Jurist – Supreme Court rejects appeal by ex-Goldman Sachs director
