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Rajat Gupta released early after 19 months in prison

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Washington: Rajat Gupta, Former Indian-American Director of Goldman Sachs Group was released early after being in federal prison for 19 months, but according to media he will have to stay in house arrest till March.

Gupta, convicted in June 2012 for leaking tips to hedge fund billionaire Raj Rajaratnam, was released on January 5 from Federal Medical Centre Devens, a federal correctional facility in Ayer, Massachusetts, 64 km from Boston.

But even after release from Devens, he will remain a federal inmate until March 13, confined to his apartment in Manhattan’s Century building in New York and required to wear an ankle bracelet that monitors his movements, according to the New York Times.

Gupta, who began a two-year sentence for securities fraud a year and a half ago, applied last year to corrections officers for an early discharge from Devens.

Under the Second Chance Act, the Bureau of Prisons is authorised to send an inmate to what is called community confinement for re-entry purposes, the Times said.

Under the rules governing home confinement, Gupta can go to work, visit a doctor’s office or attend religious services, Joel Sickler, the founder of the Justice Advocacy Group, a company that advises inmates on prison stays, was quoted as saying.

“With permission, you can go shopping or get a haircut,” he said.

When Gupta was assigned to Devens, he was sent to the facility’s minimum security camp which houses 124 inmates, the Times said.

The camp is separate from the main prison where Rajaratnam is serving an 11-year sentence for insider trading. Inmates in the camp do not come in contact with prisoners in the main compound.

But last summer, Gupta, 67, was transferred to the main compound, which houses 1,046 inmates and offers medical facilities.

In April 2015, he was sent to the prison’s Special Housing Unit for having an unauthorized item an extra pillow.

Gupta had grabbed the extra pillow, as many inmates do, to help ease a bad back. “Rajat ended up finding the medical centre more to his liking than the camp,” Sickler was quoted as saying.

“They didn’t nitpick so much.” He was also afforded a greater degree of privacy in the main compound, where inmates are housed in cells, rather than in open barracks.(IANS)(image:dealbreaker.com)

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Rajat Gupta’s appeal in insider trading case rejected

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New York: Goldman Sachs’ former India-born director Rajat Gupta failed to get his insider-trading conviction tossed on the ground that he did not benefit from the alleged tips after a judge ruled it was “too little, too late”.

Manhattan federal Judge Jed Rakoff on Thursday rejected Gupta’s appeal to have his 2012 conviction overturned, saying a recent appeals court decision did not affect tippers like him, the New York Post reported.

Gupta and Galleon Group founder Raj Rajaratnam, to whom Gupta was accused of passing illegal tips about Goldman Sachs “were close business associates with a considerable history of exchanging financial favours”, Rakoff noted.

He had appealed against his conviction after an appeals court threw out two insider-trading convictions because the government had not proved that the people who gave the tips had received a financial benefit.

Gupta is serving a two-year sentence at a prison in Massachusetts and is reportedly scheduled for a March 2016 release.

In 2008, Gupta had been named chairman of Galleon International, Rajaratnam’s $1.1 billion hedge-fund firm, in which he had a 15 percent stake.

While a Goldman director, Gupta told Rajaratnam that Warren Buffett planned to invest $5 million in the bank during the financial crisis, then later leaked information that Goldman would post a fourth-quarter loss.

That information provided a “potential pecuniary benefit” to Gupta because of his investments in Galleon, Rakoff said, according to the Post.

Rajaratnam has also asked the court to throw out his conviction based on the same appeals court decision.

(IANS)

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