Well at least we got some press and worldwide focus on all of these crooks!
A slap on the wrist and a 2-year vacation at a country club prison. On a private island in the South Pacific, Jon Corzine is doing a touchdown dance.
Gupta threw away a distinguished career for crimes committed while serving on Goldman’s board. Stephen Friedman, another board member has also faced scrutiny.
Rajat Gupta, the former Goldman Sachs director and McKinsey & Co. managing director who rose to the pinnacle of Wall Street, was sentenced to two years in prison for passing inside tips to his business partner.
Gupta, who ran McKinsey from 1994 to 2003, was sentenced today by U.S. District Judge Jed Rakoff in Manhattan for leaking stock tips to Galleon Group LLC co-founder Raj Rajaratnam. Gupta, 63, was convicted by a jury in June of one count of conspiracy and three counts of securities fraud.
Rakoff ordered Gupta to report to prison on Jan. 8 and fined him $5 million, rejecting a bid to allow him to remain free pending appeal.
Prosecutors had sought a prison term for Gupta of as long as 10 years in prison. Assistant U.S. Attorney Richard Tarlowe today argued that Gupta’s crimes warranted a substantial prison time because of his prominence in the business world and the egregiousness of his crimes. Tarlowe said a sentence of probation would give the impression that there is “a two-tier system of justice.”
While Gupta didn’t personally profit, his tips allowed Rajaratnam to earn millions of dollars, Tarlowe said.
Raj Gupta on India’s growth: