New York, May 31 (PTI) : Former Goldman Sachs director Rajat Gupta will start serving his two-year jail term from June 17, with the US court of appeals here rejecting his motion that he continue to be free on bail till his case on insider trading charges is heard again.
India-born Gupta, a former head of consultancy firm McKinsey, could be sent to a medium-security prison in Otisville, New York, about 70 miles from New York City.
After a federal jury had found Gupta guilty in 2012 of passing confidential boardroom information to his hedge fund friend Raj Rajaratnam, he was sentenced to two years in prison, ordered to pay $5 million in fines and a separate $6 million in restitution to Goldman Sachs.
The Harvard-educated Gupta lost his appeal to overturn his conviction on insider trading charges and was ordered in April to surrender and begin his two-year prison sentence on June 17.
Gupta, 65, had filed his motion earlier this month asking the court for an order staying his surrender date and continuing bail pending further appellate review of his conviction on insider trading charges.
He had petitioned that a three-judge panel that upheld his conviction and two-year prison sentence should reconsider its decision and the appeals court the case again, arguing that “critical evidence” in his favour was excluded at trial.
Manhattan federal prosecutor Preet Bharara had opposed Gupta's motion to stay his surrender date and be free on bail till his case is reheard.
The district court's order directing Gupta to surrender to the Bureau of Prisons on June 17 was “issued on Gupta’s consent,” Bharara said in the motion.
”Gupta's motion to stay the surrender date and continue bail pending his anticipated petition for certiorari should be denied...(His) motion... lacks merit. Gupta's motion curiously omits any reference to the fact that he consented to the District Court’s entry of the surrender order that he now asks this Court to stay,” Bharara said.