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Insider trading: Prosecutors want Rajat Gupta jailed for 10 years

US prosecutors want former Indian-American director of Goldman Sachs Group, Rajat Gupta, jailed for up to 10 years, even as his lawyers suggest he could repay with community work in rural Rwanda.

BT Online Bureau   New York     Last Updated: October 18, 2012  | 11:44 IST

US prosecutors want Rajat Gupta, the former Indian-American director of Goldman Sachs Group, jailed for up to 10 years, but his lawyers suggest he could repay for his "shocking" crimes with community work in rural Rwanda.

Prosecutors have urged a sentence of 97 to 121 months for Gupta, who is scheduled to be sentenced on October 24 for his June conviction for insider trading on three counts of securities fraud and one count of conspiracy.

Gupta, 63, allegedly passed corporate secrets he learned in the boardroom about Goldman to convicted hedge fund manager Raj Rajaratnam.

"Gupta held positions of extraordinary privilege and prestige," said Assistant US Attorney Richard Tarlowe in a court filing, according to the Wall Street Journal.

Prosecuters argued that he should also forfeit more than $1.1 million, an estimate of the hedge fund titan's personal gain from his tips. They also wanted Gupta to pay restitution of nearly $6.8 million to Goldman for legal fees, compensation and investigative costs.

MUST READ:All about the Rajat Gupta trial

"He understood as well as anyone the special responsibility that came with being in such an extraordinary position of trust... Yet, time and time again, over the span of nearly two years, Gupta flouted the law and abused his position of trust."

However, lawyers for Gupta said he should receive probation and community service because he never profited from the alleged illegal trading, lived an "exemplary" life and had already suffered serious consequences.

As one option, they suggested Gupta work on health care and agriculture in rural Rwanda.

"It would be punishment reflecting the seriousness of the offense of which he was convicted," Gary Naftalis, a lawyer for Gupta, said, while "enabling him to give back to society and employ his talents in a country, and in a manner, consistent with US interests."

In handing down a sentence to Gupta, US District Judge Jed Rakoff, is likely to consider the defence's arguments about Gupta's "exemplary life of uncommon accomplishment" and dedication as a family man despite a demanding career, the Journal said.

That has been reflected in more than 400 letters from Gupta's relatives and supporters, including former UN Secretary General Kofi Annan and Microsoft chairman Bill Gates that Rakoff has received through his lawyers.

With inputs from IANS

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