One day after corporate chieftain Rajat Gupta was sentenced to two years in prison after his conviction on insider trading charges, a different judge sentenced a former AT&T employee who pleaded guilty to sharing privileged information with investors to one year’s jail time.
Alnoor Ebrahim, who pleaded guilty in June to sharing sales information for AT&T handset devices, including the iPhone and Blackberry. Mr. Ebrahim, who was sentenced by Judge Paul J. Oetken, was paid more than $180,000 for his work with expert network Primary Global Research, which consisted of hundreds of calls with the firm’s clients.
Rajat Gupta, the former chief executive officer of McKinsey & Co., was sentenced to two years imprisonment for insider trading this afternoon during a hearing presided over by Judge Jed Rakoff at the U.S. Southern District courthouse.
Mr. Gupta, who was convicted in May of using his position on the board of directors at Goldman Sachs to pass privileged information to Galleon Group hedge fund manager Raj Rajaratnam, has sought probation in lieu of imprisonment. The government recommended a jail term of eight to 10 years.
“With today’s sentence, Rajat Gupta now must face the grave consequences of his crime,” said U.S. Attorney Preet Bharara in an emailed statement. “His conduct has forever tarnished a once-sterling reputation that took years to cultivate. We hope that others who might consider breaking the securities laws will take heed from this sad occasion and choose not to follow in Mr. Gupta’s footsteps.”
And it had nothing to do with Lloyd Blankfein, the Goldman Sachs chief executive officer whose presence in Judge Jed Rakoff’s courtroom last week lent a few light moments to what has been a tedious undertaking. No, we’re talking about news that Mark Schwartz, the banker who headed Goldman’s Asian operations from 1999 Read More
Made you look!
Rajat Gupta, the former McKinsey & Co. chief executive accused of leaking corporate secrets to hedge fund manager Raj Rajaratnam, will not testify in his own defense, according to a letter sent by Mr. Gupta’s lead attorney Gary P. Naftalis to Judge Jed Rakoff yesterday:
“We have the spent the last day reviewing Read More
As we remarked this morning, the wheels of justice have been turning slowly in the insider-trading trial of Rajat Gupta, the former McKinsey & Co. chief executive accused of funneling corporate secrets to Galleon Group hedge fund manager Raj Rajaratnam.
Indeed, so slowly that Judge Jed Rakoff has exhorted attorneys to liven up proceedings, Read More
For anyone who’d like to see the bank executives who led America into the teeth of the financial crisis strung up by the laces of their Prada wingtips, a trip to the Southern District courthouse in Lower Manhattan may be a deflating experience.
The Observer had come to the federal courthouse seeking succor. Late last Read More
Seeking redress: The bankruptcy trustee assigned to recover claims on MF Global’s U.S. brokerage unit pointed a finger at Jon S. Corzine, erstwhile CEO of the failed broker-dealer, in a 275-page report published yesterday. James Giddens, the trustee, may pursue claims of “breach of fiduciary duty and negligence” against Mr. Corzine and other Read More
After 16 years presiding over white collar cases in the U.S. District Court’s Southern District, you’d think Judge Jed Rakoff would be hard to disallusion. Not so. It only took six days for the insider trading trial of Rajat Gupta—the former McKinsey & Co. CEO accused of tipping Galleon Group hedge fund manager Raj Rajaratnam to sensitive corporate secrets—to cause Mr. Rakoff to hang his head in dismay.