Bloomberg reports that Gupta, who ran McKinsey & Co. from 1994 to 2003, is set to come before U.S. District Judge Jed Rakoff in Manhattan at 2 p.m. to be sentenced for leaking stock tips to Galleon Group LLC co-founder Raj Rajaratnam. Prosecutors say Gupta, convicted in June of securities fraud and conspiracy, deserves as long as 10 years in prison. Gupta, 63, seeks probation and community service, and his lawyer has proposed that he work with needy children in New York or the poor in Rwanda.
The sentencing marks the downfall of a man who rose to the top of corporate America after being orphaned as an 18-year-old in Kolkata. He has served on the boards of Procter & Gamble Co. (PG) and AMR Corp. (AAMRQ), won praise for his charity from Microsoft Corp. (MSFT) Chairman Bill Gates and former United Nations Secretary-General Kofi Annan and, as McKinsey’s youngest managing director, almost tripled firm revenue.
'Rajat Gupta has lived an exemplary life of uncommon accomplishment, compassion and generosity', defense attorney Gary Naftalis wrote in a legal brief to Rakoff last week.
Gupta 'was at the pinnacle of a profession built on protecting client confidences', prosecutors said in reply. 'Yet, time and time again, over the span of nearly two years, Gupta flouted the law and abused his position of trust'.
Gupta, who owns a $9m waterfront home in Westport, Connecticut, and remains free on bail, is the most prominent of 70 people convicted since a nationwide insider-trading crackdown by U.S. prosecutors began four years ago. Rajaratnam, whose case will come before an appeals court tomorrow, is serving 11 years after his own conviction last year.
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