India-born former Goldman Sachs Director Rajat Gupta will on Tuesday report to a prison in Massachusetts to begin his two-year sentence for insider trading, after having fought an over three-year long legal battle with all his might to clear his name.
65-year-old Gupta, once regarded as among the most powerful and influential in corporate America, will serve his jail term at a minimum security satellite camp of the Federal Medical Center-Devens in Ayer, Massachusetts. Incidentally Gupta’s camp, which currently has 132 inmates, is next to the medical centre where his one-time friend and business associate hedge fund founder Raj Rajaratnam is serving his 11-year prison sentence for running a massive insider trading scheme. Gupta was convicted in 2012 after a jury trial of passing
confidential information about Goldman Sachs to Rajaratnam minutes after he learned about them at the board meetings.
The IIT-Delhi and Harvard alumnus is expected to arriveat the prison facility before noon after which he will undergo routine medical tests, an information officer at the prison said over phone. The medical tests will take a day to be completed, following which Gupta will be lodged in the satellite camp.
According to initial information available on thefacility’s website, Gupta has been described as a 65-year-old “Asian, male.” According to the camp’s rules, Gupta will be able to receive family and friends on Saturdays, Sundays and federal holidays between 8:30 AM to 3:00 PM while on Fridays between 2:30pm and 8:30pm.
Normally, only five visitors, including children, are allowed to visit an inmate at any given time. A report last week in the New York Times had quotedretired Bureau of Prison’s Correctional Treatment Specialist Jack Donson as saying that Gupta could serve approximately 85 per cent of his two-year sentence before becoming eligible for transfer to a halfway house prior to his release date. Although the statutory maximum halfway house is 12 months, white collar offenders with family and financial resources can expect a minimal amount of halfway house placement or direct home detention.
“Based on that, Gupta could be back home by the end of2015. When Gupta reports to Devens, he will have fought his conviction and efforts to stay out of prison for a longer period of time than he will even be in prison” Donson said. Eminent journalist Anita Raghavan authored a book on the collapse of Rajaratnam’s Galleon hedge fund and the unraveling of Wall Street big-wigs as the government, led by Mannattan’s India-born top federal prosecutor Preet Bharara, uncovered one of the biggest insider trading schemes in US history.
In ‘The Billionaire’s Apprentice: The Rise of the Indian- American Elite and the Fall of the Galleon Hedge Fund,’ Raghavan writes that Gupta would “still be remembered as …continued »