Gupta, also a former global managing director of the consulting firm
McKinsey & Co, had asked the country's highest court for permission
to stay free during his appeal, after the 2nd U.S. Circuit Court of
Appeals in Manhattan on May 30 denied him the same request.
Justice Ruth Bader Ginsburg, who handles emergency applications from
the 2nd Circuit, on Wednesday denied Gupta's request to stay out of
The full 2nd Circuit has yet to decide whether to rehear Gupta's
appeal of his conviction, which a three-judge panel of that court
upheld on March 25.
Gary Naftalis, a partner at Kramer Levin Naftalis & Frankel who
represented Gupta, declined to comment. Seth Waxman, a WilmerHale
partner and former U.S. solicitor general, is also among Gupta's
Gupta, 65, is the highest-ranking corporate official to be convicted
in the government's multi-year probe of insider trading in the hedge
A Manhattan federal jury in June 2012 convicted him of passing tips
about Goldman, including news about its results and a $5 billion
investment from Warren Buffett, to his friend Raj Rajaratnam,
founder of the Galleon Group hedge fund firm.
In appealing his conviction, Gupta is challenging the use of wiretap
evidence and the jury instructions.
[to top of second column]
Gupta's lawyers have said the appeal is likely to result in a
reversal of the conviction and a new trial. The trial judge, Jed
Rakoff, has agreed to recommend that Gupta be assigned to a
medium-security prison in Otisville, New York, about 70 miles (113
km) northwest of New York City.
Rajaratnam is serving an 11-year prison term after his 2011 insider
trading conviction, in a case also built with wiretap evidence. He
is appealing his conviction to the Supreme Court.
(Reporting by Jonathan Stempel in New York; Editing by Howard Goller
and Dan Grebler)
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