Rajat Gupta, ex-Goldman director, gets two-year prison sentence for leaking corporate secrets during financial crisis
Rajat Gupta, former Goldman Sachs Inc. director and former senior partner at McKinsey & Co., exits Federal court after being sentenced to two years in prison on Oct.r 24, 2012 in New York City. Gupta, 63, was convicted by a federal jury in June for leaking inside information to hedge-fund manager Raj Rajaratnam. He was also ordered to pay a $5 million fine.
Rajat Gupta, the former director of Goldman Sachs Group, Inc., has received a two-year prison sentence for leaking corporate secrets to a hedge-fund manager during the financial crisis, the Wall Street Journal reported.
The former Goldman Sachs director fell from grace after an aggressive investigation into insider trading by government prosecutors and the FBI. Gupta is the most prominent person yet to receive a prison term as a result of the investigation, The New York Times reported.
"The history of this country and the history of the world, I'm afraid, is full of examples of good men who do bad things," Judge Jed Rakoffsaid during a Wednesday hearing in New York, according to the Journal.
More from GlobalPost: Rajat Gupta convicted of insider trading
Gupta has been ordered to report to prison Dec. 11, and to pay $5 million in fines, the Los Angeles Times reported. Gupta faced the possibility of up to ten years in prison, after he was convicted in June of conspiracy and securities fraud, the LA Times said.
The prominent financial figure also previously headed consulting firm McKinsey & Company, served on the board of Proctor & Gamble, and advised the Clinton Foundation and the Bill and Melinda Gates Foundation, The New York Times said.
Up until the investigation, Gupta had lived the American Dream as "a man who rose to the top of corporate America after being orphaned as an 18-year-old in Kolkata," Bloomberg wrote.