Rajat Gupta, a key player in one of the biggest insider trading scandals in memory, helped his business partner/friend Raj Rajaratnam (at right), earned multiple millions of dollars and avoid losses. As a board member for Goldman Sachs, he leaked confidential information repeatedly over a period of years.
In 2008, for example, he told Rajaratnam, the president of the Galleon Group, that the board had approved a $5 billion investment by Berkshire Hathaway, and later that year, that Goldman was losing money for the quarter.
And his prison sentence? 20 years? 10 years? Nope. Just two years, according to a statement by the U.S. Attorney’s office. He still has to pay a $5 million fine.
Rajaratnam was sentenced in October, 2011 to 11 years in prison and fined $63 million.
This article from the Village Voice Archive was posted on October 25, 2012