Former Goldman Sachs director Rajat Gupta, 63, was sentenced to two years in prison on Wednesday by a Manhattan federal court for insider trading. He will also have to pay a $5 million fine.
The verdict was a semi-victory for Gupta and legions of his supporters who had fought hard and long to get him a lenient sentence. Prosecutors had been seeking 10 years in prison for Gupta passing on illegal tips, while his own lawyers argued he should get probation and community service because he didn’t actually profit from the crimes.
As anticipated, Judge Jed S. Rakoff handed down a rather more lenient prison sentence to Gupta than the 8 to 10 years stipulated by federal sentencing guidelines.Gupta’s sentence is in line with more moderate prison terms handed down by Judge Rakoff in other recent insider trading cases. The judge summarised how most people view Gupta who rose swiftly through the ranks of corporate America and gave back generously to the world.
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