BBC News, 24
October 2012
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| Rajat Gupta described the guilty verdict as "devastating" |
A former
Goldman Sachs board member who was found guilty of four criminal counts of
insider trading has sentenced to two years in jail.
Rajat
Gupta, 63, had leaked boardroom secrets to Raj Rajaratnam, a former hedge fund
manager now serving 11 years in prison.
US District
Court Judge Jed Rakoff also ordered Gupta to pay a $5m (£3m) fine.
Gupta said
he regretted the impact of the case on his family and friends.
Reading
from a statement, he said: "The last 18 months have been the most
challenging period of my life since I lost my parents as a teenager."
He added:
I've lost my reputation I built for a lifetime. The verdict was
devastating."
During the
court case, which resulted in Gupta being found guilty in June, the jury heard
secret recordings of conversations between him and Rajaratnam.
The trial
focused on a phone call made to Rajaratnam on 23 September 2008, minutes after
Gupta had listened to a private conference call discussing a $5bn (£3.2bn)
investment in Goldman Sachs by Warren Buffett's company Berkshire Hathaway. The
deal was due to be made public after stock markets closed that day.
According
to phone records, Rajaratnam bought $40m in Goldman Sachs stock moments after
the phone call, earning nearly $1m.
Gupta, who
was born in India and educated at Harvard, also served on the boards of Procter
& Gamble, the Rockefeller Foundation and the Bill and Melinda Gates
Foundation.
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