NEW YORK (TIP): US prosecutors want Rajat Gupta, a former Indian- American director of Goldman Sachs Group, jailed for up to 10 years, but his lawyers suggest he could repay for his “shocking” crimes with community work in rural Rwanda. Prosecutors have urged a sentence of 97 to 121 months for Gupta, 63,who is scheduled to be sentenced Oct 24 for his June conviction for insider trading on three counts of securities fraud and one count of conspiracy.
“Gupta held positions of extraordinary privilege and prestige,” said Assistant US Attorney Richard Tarlowe in a court filing Wednesday, October 17, according to the Wall Street Journal. “He understood as well as anyone the special responsibility that came with being in such an extraordinary position of trust …..Yet, time and time again, over the span of nearly two years, Gupta flouted the law and abused his position of trust.”
Gupta, who allegedly passed corporate secrets he learned in the boardroom about Goldman to convicted hedge fund manager Raj Rajaratnam, should also forfeit more than $1.1 million, an estimate of the hedge fund titan’s personal gain from his tips, prosecutors argued. They also wanted Gupta to pay restitution of nearly $6.8 million to Goldman for legal fees, compensation and investigative costs. However, lawyers for Gupta said he should receive probation and community service because he never profited from the alleged illegal trading, lived an “exemplary” life and had already suffered serious consequences.
As one option, they suggested Gupta work on health care and agriculture in rural Rwanda. “It would be punishment reflecting the seriousness of the offense of which he was convicted,” Gary Naftalis, a lawyer for Gupta, said, while “enabling him to give back to society and employ his talents in a country, and in a manner, consistent with US interests.” In handing down a sentence to Gupta, US District Judge Jed Rakoff, is likely to consider the defense’s arguments about Gupta’s “exemplary life of uncommon accomplishment” and dedication as a family man despite a demanding career, the Journal said.
That has been reflected in more than 400 letters from Gupta’s relatives and supporters, including former UN Secretary General Kofi Annan and Microsoft chairman Bill Gates that Rakoff has received through his lawyers.