Wednesday, October 24, 2012
Rajat Gupta, former head of McKinsey & Co. and former director of Goldman Sachs and Procter & Gamble, was sentenced to two years in prison for his conduct in passing along material inside information to Raj Rajaratnam, in addition to a $5 million fine and one year of supervised release after serving his sentence. Prosecutors asked for up to ten years in prison. Judge Rakoff received numerous letters from prominent businessmen and others, urging leniency. During the hearing, Judge Rakoff said:
"I think the record, which the government really doesn't dispute, bears out that he is a good man. But the history of this country and the history of the world, I'm afraid, is full of examples of good men who do bad things."
Gupta's attorneys will appeal.
NYTimes, Rajat Gupta Gets 2 Years in Prison