Rajat Gupta convicted on insider trading charges court to pronounce the sentence on 18th
October
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After
three weeks of trial, a US court held the 63-year- old guilty of
providing insider information to Galleon hedge fund founder Rajaratnam,
who was sentenced last year to 11 years in prison for insider trading.
Gupta was found guilty by a federal court in Manhattan on four counts, out of six.
The court will pronounce the sentence on 18th
October. The conviction marks a tragic fall for the Kolkata-born
financial wizard, who rose from a modest background to become a force to
reckon with at the Wall Street.
One
of the jurors told the media it was a difficult decision for them but
the evidence against him was overwhelming. He said Gupta was a person
who came to the US and rose through the ranks.
He led a "story book life" and had full support of the family as he saw during the trial.
Gupta
was convicted on three counts of securities fraud and one count of
conspiracy for passing confidential boardroom information about Goldman
and Proctor & Gamble companies to the hedge fund that earned
millions of dollars trading on his tips.
He was acquitted of two counts of securities fraud.
Reacting
to the verdict by a 12-member jury, defence lawyer Gary Naftalis said
he was disappointed that the jury convicted Gupta on four charges.
"This
was only round one of the case and we would appeal if necessary," said
Naftalis, adding they continued to believe that Gupta acted with
integrity and honesty and never pocketed a dishonest dime.
Gupta's
wife and four daughters broke down as the jury read out the sentence
but Gupta was expressionless. As the jury left the court room, Gupta
hugged his family members. He did not talk to media as he walked out of
the courtroom.
Gupta
was found guilty for passing information about the USD 5 billion
investment by Warren Buffett's Berkshire Hathaway Inc, and of providing
information to Rajaratnam on October 24, 2008 about Goldman stock.
There
were five security fraud charges and once conspiracy charge against
him. Out of the five security fraud charges, he was found guilty on
three and on the lone conspiracy charge.
FBI
Assistant Director Janice K Fedarcyk said the verdict was a "milestone"
in the agency's drive, initiated in 2007, against illegal conduct in
the hedge fund industry.
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