Rajat Gupta, Former Goldman Director from the Wall Street was convicted by a federal jury in U.S. for the allegation of leaking inside information to hedge-fund manager Raj Rajaratnam.
Gupta was found guilty on four counts, out of six in a federal court in Manhattan of illegally providing insider information to his friend Raj about confidential market information on Friday.
Kolkata-born financial wizard Rajat Gupta is one of the most successful Indian Americans at the Wall Street who rose from a modest background and reached the pinnacle of corporate America as the managing partner of McKinsey & Co. and director at Goldman Sachs Group Inc. (GS) and Procter & Gamble Co. (PG). He can be tagged as the poster boy of Indians at the Wall Street.
Earlier Rajaratnam had been sentenced to 11 years in prison for insider trading. One of the 12 jurors of this case said Gupta led a 'story book life’. The sentence will be pronounced on October 18 in the Court.
Defense lawyer Gary Naftalis said "This was only round one of the case and we would appeal if necessary. Gupta acted with integrity and honesty and never pocketed a dishonest dime.”
Gupta was convicted on three counts of securities fraud and one count of conspiracy. He was acquitted of two counts of securities fraud.
Gupta was seen expressionless while his wife and four daughters broke down as the jury read out the sentence. As the jury left the court room, Gupta hugged his family members.
The verdict is being regarded as a major victory for US prosecutors as the government drives to stop leaking of corporate secrets to Wall Street.