June 1, 2014 2:11:08 am
Former Goldman Sachs Group Inc director Rajat Gupta will begin serving a two-year prison term on June 17 after a US federal appeals court rejected his bid to stay free while he appeals his insider trading conviction.
In a brief order on Friday, the 2nd US Circuit Court of Appeals in New York rejected a request by Gupta, a former global managing director of consulting firm McKinsey & Co, to delay his surrender and remain free on bail.
Gupta, 65, was convicted in June 2012 of feeding tips from Goldman board meetings to longtime friend Raj Rajaratnam, founder of the Galleon Group hedge fund firm. Evidence included a September 2008 phone call, just before Goldman announced a $5 billion investment from Warren Buffett’s Berkshire Hathaway Inc, in which Rajaratnam was heard telling a trader that he learned from a source, who prosecutors said was Gupta, that “something good might happen to Goldman”.
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