Rajat Gupta faces jail for role in Galleon insider trading case

 
City A.M. Reporter
RAJAT Gupta will be sentenced this week for insider trading, with prosecutors hoping to pin a ten-year jail term to the former Goldman Sachs board member.

Gupta, who is also a former head of management consultancy McKinsey, is set to be sentenced on Wednesday in a Manhattan court.

He was found guilty in June of leaking Goldman boardroom secrets to his hedge fund friend Raj Rajaratnam, the founder of Galleon who is serving an 11-year prison term for insider trading.

Gupta, 63, is the most influential corporate figure to be caught in a broad insider trading crackdown of the last four years. His lawyers have filed court papers asking he be spared prison, citing his years of charitable works, and suggested he be ordered to probation and community service instead.

The government said Gupta should get a significant prison term, saying his "crimes are shocking" and he time and time again flouted the law and abused his position of trust.