New York, Jun 12 (PTI): Former Goldman Sachs director Rajat Gupta will have to report to jail next week to begin his two-year sentence on insider trading charges, with the US Supreme Court on Wednesday rejecting his bid to remain free on bail till his appeal for re-hearing his conviction is heard.
Gupta, 65, convicted in 2012 of passing confidential boardroom information to his friend and business associate Raj Rajaratnam, founder of the Galleon Group hedge fund firm, is scheduled to begin his prison term on June 17.
US district judge Jed Rakoff, who presided over his trial, would recommend that Gupta be assigned to a medium-security prison in Otisville, about 70 miles northwest of New York City.
Gupta had made a 118-page submission to Supreme Court Justice Ruth Bader Ginsburg on June 10, requesting to remain free on bail and saying that if an appeals court rules in his favour, he will “likely” be entitled to a new trial.
Gupta, who is also a former global managing director of consultancy McKinsey & Co, has so far remained free on bail. He said he presents no risk of flight or danger to the community, and he has abided by all conditions of release set by the district court.
Ginsburg, who oversees emergency applications, denied Gupta's request in an order passed on Wednesday.
Ginsburg made no comment on denying Gupta's request.
A spokesperson at the office of Gupta's lawyer Seth Waxman, a former US solicitor general, said Waxman does not usually comment on pending matters but added that ”unfortunately Gupta’s application was denied.”
The Harvard-educated Gupta is one of the most high-profile Wall Street executives to be convicted of insider trading, charges that were brought against him by Manhattan's India-born top federal prosecutor Preet Bharara.
Apart from the two-year prison term, Gupta has been ordered to pay $5 million in a fine and $6 million in restitution to Goldman Sachs.
Gupta's submission to the US Supreme Court was his last-ditch effort to avoid going to prison. Last month, he had filed a motion in the court of appeals to stay his surrender date and for bail pending the disposition of his re-hearing petition but the court had denied that motion.