‘Good man who did bad things’: Gupta gets 2 years in jail

The hearing in an overflowing courtroom (an additional room was arranged for the screening of the proceedings) had its elements of drama. The judge was leaving after reading out the sentence when the defence sought further relaxations. The court agreed to push the surrender date to January 8,2013,so that Gupta could spend the holidays with his family. Judge Rakoff also agreed to assign Gupta to a medium-security prison in Otisville in New York.

The defence highlighted the philanthropic initiatives spearheaded by Gupta,including his contributions to the fight against AIDS and malaria,a fact that was acknowledged by the judge.

“The court can say without exaggeration that it has never encountered a defendant whose prior history suggests such an extraordinary devotion,not only to humanity writ large,but also to individual human beings in their times of need,” Judge Rakoff said.

Gupta’s attorney Gary P Naftalis argued unsuccessfully that his client should not be sent to prison as his “fall from grace of Greek tragedy proportions” was harsher punishment than incarceration. Judge Rakoff,however,noted that insider trading was a crime that was “easy to commit and hard to catch”,and the need for a deterrent was strong.

The defence suggested community service in Rwanda as possible punishment,a proposal that the judge termed “innovative”,but dismissed as “peace corps for insider traders”.

The judge agreed with the prosecution’s view that Gupta breached “an extraordinary position of trust”. The jury in June found that Gupta disclosed two confidential pieces of information — a $5 billion investment in Goldman Sachs by Warren Buffett on September 23,2008,and a tip-off about a third quarter loss at the financial giant.

Gupta’s role,Judge Rakoff said,was “not only overwhelming,it was disgusting in its implications”.

The judge concluded that the illegal tips helped Rajaratnam make gains of over $5 billion,but acknowledged that Gupta did not profit directly from the leaks.

The former McKinsey CEO was sombre throughout the session and had no visible reaction to the sentence. Gupta’s wife Anita and their four daughters were teary-eyed on several occasions during the session.

In his brief statement in court,Gupta said,“The last 18 months have been the most challenging of my life since I lost my parents as a teenager.” He added that he regretted that his family,friends and institutions dear to him,had been burdened by the events of the last year.

The judge turned down Gupta’s plea for bail pending appeal,saying,“My heart wants to grant this motion but my head says no”.

(The writer is a student at Columbia University,New York)