India-born former Goldman Sachs director Rajat Gupta is expected to be released from a US prison in March 2016 when his two-year prison term for insider trading charges will end, according to his prison records.
Mr. Gupta, 65, reported to the minimum security satellite camp at FMC Devens in Ayer, Massachusetts on June 17. According to information on the Federal Bureau of Prisons website, Mr. Gupta’s “release date” from prison is March 3, 2016. Mr. Gupta began his prison sentence after fighting a protracted legal battle to clear his name in one of the biggest insider trading schemes in US history.
Apart from the two-year sentence, Mr. Gupta has been ordered to pay $ 5 million in fine and another $ 6 million in restitution to Goldman Sachs. He also has been ordered to pay $ 13.9 million as penalty in the US Securities and Exchange Commission’s parallel insider trading case against him.
The former McKinsey head suffered a major blow this week when his petition to re-hear his insider trading conviction was denied by an appeals court. A full panel of the 2nd US Circuit Court of Appeals denied Gupta’s petition for “panel rehearing, or, in the alternative, for rehearing en banc” his case.
The prison where Mr. Gupta is lodged 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 the massive insider trading scheme.
A three-judge panel of the appeals court had in March >upheld Mr. Gupta’s conviction by a district judge on insider trading charges and had denied his bid for a new trial. In April, Mr. Gupta had filed a combined petition for rehearing and rehearing en banc, requesting that he be allowed to remain free on bail till his petition is decided on by a full bench of the appeals court.
The Harvard-educated Mr. Gupta is one of the most high-profile Wall Street executives to be convicted of insider trading, charges that were brought against him by Manhattan’s India—born top federal prosecutor Preet Bharara.
