Bloomberg reports that Gupta, a former Goldman Sachs director, will come before Rakoff in Manhattan federal court on October 24th to be sentenced for leaking stock tips to Galleon Group co-founder Raj Rajaratnam. Prosecutors say Gupta, convicted by a jury in June, deserves as long as 10 years in prison. Gupta seeks probation.
Gary Naftalis, a lawyer for Gupta, argued his client’s crime was an 'aberrational' event in a 'lifetime of good works' that merited a punishment for a man who has suffered an extraordinary fall from grace. He asked Rakoff to impose a term of community service, suggesting Gupta work with troubled youth in New York or with the poor in Rwanda.
Good works help, but on their own they are rarely a ‘Get out of jail free card,’' said Gordon Mehler, a former federal prosecutor who’s now in private practice in New York. 'So, it seems as if probation, even in Rwanda, is unlikely'.
Gupta, 63, is the most prominent of 70 people convicted since a nationwide insider-trading crackdown by U.S. prosecutors began four years ago. Gupta also served as managing partner of McKinsey & Co. from 1994 to 2003 and on the board of Procter & Gamble Co. (PG) from 2007 to March 2011, when he also resigned from the boards of Goldman Sachs, AMR Corp. (AAMRQ) and two other companies.
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