Winners, losers in Rajat Gupta’s sentence
By MarketWatch
SAN FRANCISCO (MarketWatch) — Someone from Goldman Sachs Group Inc. is going to jail.
U.S. Federal District Judge Jed Rakoff sentenced former Goldman board director Rajat Gupta to two years in prison for passing inside information to Raj Rajaratnam.
The hedge-fund industry, in the wake of Rajaratnam’s conviction, is already grousing and readjusting. What they consider research — reaching out to executives and using expert networks — is under fire.
For Gupta, the defeat comes doubly hard. He not only seemed to be sharing Goldman secrets for no financial gain, he’s now going to jail, instead of doing community service in Rwanda as he requested. Goldman Sachs also is billing him for the costs of its internal investigation and legal fees. See: Goldman Sachs asks to be reimbursed for $6.78 million in costs.