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Wednesday, July 30, 2014

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Westporter Gupta faces prison on insider trading conviction after Supreme Court refuses appeal

Associated Press
Published 6:03 pm, Wednesday, June 11, 2014
  • Rajat Gupta of Westport will have to report to federal prison next week for his conviction on insider-trading charges after a Supreme Court justice on Wednesday rejected his last-minute request to delay it. Photo: Associated Press / Westport News
    Rajat Gupta of Westport will have to report to federal prison next week for his conviction on insider-trading charges after a Supreme Court justice on Wednesday rejected his last-minute request to delay it. Photo: Associated Press

 

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The Westport man convicted in a high-profile insider trading case must report to prison as scheduled next week after a Supreme Court justice on Wednesday rejected his last-minute request to delay it.

Lawyers for Rajat Gupta, 65, a former board member at both Goldman Sachs and Procter & Gamble, had asked to delay his June 17 date to begin serving a two-year prison sentence for his 2012 conviction on conspiracy and securities fraud charges.

He lives on an estate in the Greens Farms section of town.

But without issuing a formal written order, Justice Ruth Bader Ginsburg in Washington denied Gupta's request to postpone reporting until his appeals are finished.

The lawyers cited unique appeal issues, including a claim that Gupta's trial judge should have instructed the jury that proof of his good character may itself give rise to reasonable doubt. The lawyers said it was also likely that he would serve half his sentence before appeals are exhausted.

The government did not respond to the defense request before Ginsburg rejected it.

The conviction of Gupta was upheld by the 2nd U.S. Circuit Court of Appeals in New York in March, and Gupta has asked the court to reconsider its decision.

Gupta's lawyer, Gary P. Naftalis, declined to comment Wednesday.

Gupta was convicted on charges that he fed tips about Goldman to one-time billionaire hedge fund owner Raj Rajaratnam, who is serving an 11-year prison sentence after his 2011 conviction on insider trading charges. Gupta and Rajaratnam were the most prominent individuals rounded up in the government's five-year crackdown on insider trading.