Deals
Rajat Gupta Convicted for Giving Rajaratnam Inside Tips
This article is for subscribers only.
Rajat Gupta, who reached the pinnacle of corporate America as managing partner of McKinsey & Co. and director at Goldman Sachs Group Inc. and Procter & Gamble Co., was convicted by a federal jury of leaking inside information to hedge-fund manager Raj Rajaratnam.
Gupta, 63, was found guilty of three counts of securities fraud and one count of conspiracy yesterday by a federal jury in Manhattan in its second day of deliberations. Securities fraud carries a maximum prison sentence of 20 years, and conspiracy carries a five-year maximum. U.S. District Judge Jed Rakoff said Gupta can remain free on bail until his sentencing on Oct. 18.