Ex-Goldman board member’s conviction upheld
NEW YORK (AP) — A federal appeals court has upheld the insider trading conviction of a former Goldman Sachs and Procter & Gamble board member.
The 2nd U.S. Circuit Court of Appeals ruled Tuesday that Rajat Gupta was fairly convicted of conspiracy and securities fraud.
Gupta was sentenced to two years in prison but has been free on $10 million bail. Prosecutors say he fed tips about Goldman to a billionaire hedge fund owner.
His lawyer, Seth Waxman, said he is very disappointed with the decision, believes his client deserves a new trial and is closely reviewing the opinion with an eye toward an appeal.
The Connecticut resident was the biggest catch in the government’s five-year crackdown on insider trading that featured wiretaps and numerous cooperators. The prosecution resulted in dozens of convictions.