Former McKinsey & Co. managing director and Westport resident Rajat Gupta received a two-year prison term and a $5 million fine, after being convicted of leaking a tip on Berkshire Hathaway investing in Goldman Sachs Group Inc. where he was a director.
Gupta, 63, was investigated as part of a larger federal probe stemming from an insider-trading ring managed by Galleon Group founder Raj Rajaratnam, who received an 11-year sentence.
Gupta was not convicted of profiting from any tips he provided, and he is appealing his conviction. According to the Wall Street Journal, those expressing support for Gupta included Bill Gates.
“His conduct has forever tarnished a once-sterling reputation that took years to cultivate,” said Manhattan U.S. Attorney Preet Bharara, in a prepared statement. “We hope that others who might consider breaking the securities laws will take heed from this sad occasion and choose not to follow in Mr. Gupta”™s footsteps.”
