U.S. District Judge Jed Rakoff in Manhattan directed Gupta to
surrender by 2:00 p.m. EDT on that date to start serving his
sentence, according to an order issued on Thursday.
Gupta, 65, was convicted in June 2012 on securities fraud and
conspiracy charges for having fed tips, from Goldman board meetings
in the second half of 2008, to longtime friend Raj Rajaratnam,
founder of the Galleon Group hedge fund firm.
A three-judge panel of the 2nd U.S. Circuit Court of Appeals upheld
the conviction on March 25, rejecting Gupta's claim that Rakoff
improperly admitted wiretap evidence at trial.
Two weeks later, on April 8, Gupta asked the panel to reconsider, or
for the entire 2nd Circuit to review the case.
Gary Naftalis, a lawyer for Gupta, did not immediately respond to a
request for comment.
Gupta is also a former global managing director of the consulting
firm McKinsey & Co. He is the top corporate official convicted in a
broad federal insider trading probe unveiled in October 2009, when
charges against Rajaratnam were announced.
It is unclear where Gupta will serve his sentence. Rakoff agreed to
recommend that he be assigned to a medium security prison in
Otisville, New York, about 70 miles northwest of New York City. The
Federal Bureau of Prisons will make the decision. That agency did
not return a call seeking comment.
[to top of second column]
Rajaratnam is appealing his own conviction to the U.S. Supreme
Court. He is serving an 11-year prison term.
The government has won about 80 convictions and guilty pleas in the
insider trading probe.
On April 11, a federal judge approved a guilty plea by Steven
Cohen's SAC Capital Advisors LP to resolve criminal insider trading
charges, including a $1.2 billion penalty.
The case is U.S. v. Gupta, U.S. District Court, Southern District of
New York, No. 11-cr-00907.
(Reporting by Jonathan Stempel in New York;
additional reporting by Nate Raymond; editing by Bernadette Baum and Marguerita Choy)
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