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Rajat asked to pay $6.2m to Goldman

New York, Feb. 26 (Reuters): A federal judge today ordered former Goldman Sachs Group Inc director Rajat Gupta to reimburse $6.22 million to the bank to help cover its legal expenses related to his criminal insider trading case.

Goldman had sought to recover $6.91 million from Gupta, and US district judge Jed Rakoff said the bank had proved it was entitled to 90 per cent of what it requested.

Gupta is appealing his June 15, 2012, conviction and two-year prison term for leaking boardroom secrets to Raj Rajaratnam, the hedge fund manager at the centre of a multi-year US government crackdown on insider trading.

Goldman had sought to recover the fees it had paid its law firm Sullivan & Cromwell in connection with the case and related matters, citing the federal Mandatory Victims Restitution Act. Gupta had opposed making restitution but Rakoff said nearly all of what Goldman sought was a “necessary, direct, and foreseeable result of the investigation”.

 
 
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