The Telegraph
Wednesday , June 18 , 2014
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Rajat Gupta starts jail term

New York, June 17 (PTI): Rajat Gupta, a one-time poster boy for Indians in America and former Goldman Sachs director, today began his two-year prison sentence after fighting a protracted legal battle to clear his name in one of the biggest insider trading scandals in US history.

Gupta, 65, once regarded as among the most powerful and influential Indian-Americans on Wall Street, began serving his jail term at a minimum security satellite camp of the Federal Medical Centre-Devens in Ayer, Massachusetts.

Incidentally, Gupta’s camp, which currently has 132 inmates, is next to the medical centre where his one-time friend and business associate, hedge fund founder Raj Rajaratnam, is serving his 11-year prison sentence for running the massive insider trading scheme.

Gupta was convicted in 2012, following a jury trial, of passing confidential information about Goldman Sachs to Rajaratnam minutes after he learnt about them at the board meetings.

Gupta was sentenced to two years in prison, ordered to pay $5 million in fine and a separate $6 million in restitution to Goldman Sachs.

He was last year also ordered to pay a hefty $13.9 million civil penalty and permanently barred from acting as an officer or director of a public company for spilling boardroom secrets.

Gupta yesterday told a US court that he should not be required to pay the $13.9 million in civil penalties since he already has to pay over $11 million in criminal fines.