Ex-Goldman director has insider trading appeal rejected

Rajat Gupta

A federal appeals court on Tuesday rejected a bid by former Goldman Sachs director Rajat Gupta to overturn his insider trading conviction.

Reuters reports that the 2nd U.S. Circuit Court of Appeals rejected the claim by Gupta, also a former global managing director of consulting firm McKinsey & Co, that wiretap evidence should not have been admitted against him.

Gupta, 65, is the highest-ranking U.S. corporate official convicted of insider trading since the government announced a broad probe into that activity 4-1/2 years ago.

He had been appealing his June 2012 conviction and two-year prison term for having fed confidential tips from Goldman board meetings in the second half of 2008 to Raj Rajaratnam, a longtime friend and head of the Galleon Group hedge fund firm.

These tips included information on Goldman's financial results, as well as a crucial $5bn investment during the financial crisis by Warren Buffett's Berkshire Hathaway.

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