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Ex-Goldman Sachs Group Inc. (GS) director Rajat Gupta’s sentencing on securities fraud for leaking inside information to fund manager Raj Rajaratnam was reset for Oct. 17, a day earlier than previously set.
Gupta, 63, formerly managing partner of McKinsey & Co., was convicted by a federal court jury in Manhattan on June 15 of three counts of securities fraud and one count of conspiracy. Prosecutors said Gupta, who sat on the board of New York-based Goldman Sachs and Cincinnati-based Procter & Gamble Co. (PG), leaked tips he learned from board meetings to Rajaratnam, who had also been his business partner.
U.S. District Judge Jed Rakoff, who presided over the trial, originally set Gupta’s sentencing for Oct. 18. Rakoff, in an order made public today, said that date had been reset with “the consent of the parties.”
Prosecutors said Gupta’s tips included information about a $5 billion investment by Warren Buffett’s Berkshire Hathaway Inc. (A) in Goldman Sachs on Sept. 23, 2008, and on Goldman Sachs losses in the fourth quarter of 2008. Gupta faces as long as 20 years in prison for his conviction for securities fraud while conspiracy carries a maximum term of five years.
He is most prominent of the 67 people convicted since the nationwide crackdown by agents with the Federal Bureau of Investigation in New York and prosecutors in the office of Manhattan U.S. Attorney Preet Bharara began five years ago. To date, the U.S. has brought cases against 71 traders and their sources from Wall Street to Silicon Valley. No one has won an acquittal; six cases are pending.
Gary Naftalis, a lawyer for Gupta, said the sentencing date was changed at Rakoff’s request.
Jerika Richardson, a spokeswoman for Bharara, declined to comment on the rescheduling.
Rajaratnam, who co-founded Galleon Group LLC, was convicted at trial last year and sentenced to 11 years in prison, a record at the time for insider-trading crimes. He’s appealing the verdict.
The case is U.S. v. Gupta, 11-cr-00907, U.S. District Court, Southern District of New York (Manhattan).
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