Prosecutors Seek 10 Years For Ex-Goldman Board Member (Defence Say Community Service in Rwanda)

Rajat Gupta, the ex-Goldman Sachs main board director who is set to be sentenced October 24th for insider trading, should be given probation and ordered to perform community service that could include either working with New York youth or the poor in Rwanda, his lawyer said.

Bloomberg reports that attorney Gary Naftalis made the request in a sentencing memo to U.S. District Judge Jed Rakoff, who is presiding over the case. Gupta, 63, who was also formerly managing partner of McKinsey & Co., was convicted by a federal court jury in Manhattan on June 15th of three counts of securities fraud and one count of conspiracy.

During the trial, prosecutors said Gupta, who sat on the board of New York-based Goldman Sachs and Cincinnati-based Procter & Gamble Co. (PG), leaked tips he learned from board meetings to Raj Rajaratnam, who had also been his business partner. In a separate filing with the court yesterday they asked that he be sentenced to 97 to 121 months in prison for his crimes.

Naftalis and David Frankel, who represented Gupta at trial, argued that their client deserved leniency for a 'lifetime of good works' and that the crimes he was convicted of were 'aberrational'.

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