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Former Goldman Sachs director Rajat Gupta lands two-year jail for insider trading

Thursday, 25 October 2012 - 2:32am IST | Place: Manhattan | Agency: dna

Convicted for securities fraud and conspiracy in June, Gupta must report to prison on January 8.

A Manhattan court ordered former director of Goldman Sachs Group Inc. Rajat Gupta to two years in prison for leaking secrets to hedge fund managers. Apart from the jail term, Gupta, who ran McKinsey & Co. from 1994 to 2003, has been fined $5 million.

While his prosecutors had sought the maximum prison term of 10 years for Gupta, the 63-year-old corporate honcho had pleaded probation, or community service, including working with needy children in New York or Rwanda.

Gupta, who was convicted for securities fraud and conspiracy in June, is set to report to prison on January 8. The high-profile companies on whose boards he has worked include Procter & Gamble Co. and AMR Corp. Gupta, won praise for his charity from Microsoft Corp and former United Nations Secretary-General Kofi Annan.

The sentencing marks the end of a corporate career for a man who rose to global corporate heights after being orphaned at 18 on the streets of Kolkata. He rose to become the youngest managing director of McKinsey.

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