These type of news makes you think..
99% other folks who does this may not ever get caught.. that may make you believe that you will be most likely never be in this 1% category of who gets caught. But still once in a while these things do happen and in general create big deterrent for repetition of such things.. It also makes you wonder about how link between personal character and professional character and success.. Are such things worth tarnishing your reputation... Rajat was The icon and legend in his field..
It reminds me of one of my very good friend's email signature..
"Success is Journey.. Not the destination!!!"
how true..
Moment we assume that we are successful.. it is the start of our decline.. in any aspect.. it applies universally..
Good thing about US is that they are good in catching such folks.. even though it is really easy to catch such folks.. In stock market if some one is getting continuous success without any significant failures.. that has to be some kind of insider info.. as a simple rule if you are making more than double of the average market gains over 3-5 years of horizon you have to have some kind of extra information.. It is simply not possible to get continuous extraordinary gains in stock market..
Ex-Goldman Sachs exec gets prison in insider trading case
By Peter Lattman
New York Times
NEW YORK — Rajat Gupta, the former Goldman Sachs and Procter & Gamble director, was sentenced to two years in prison Wednesday for leaking boardroom secrets to former San Francisco hedge fund manager Raj Rajaratnam. Gupta, 63, who ran the consulting firm McKinsey & Co. and served as a top adviser to the foundations of Bill Gates and Bill Clinton, is the most prominent figure to face prison in the government’s sweeping crackdown on insider trading.
He was also ordered to pay a $5 million fine. In a statement, the U.S. attorney in Manhattan, Preet Bharara, said of Gupta, “His conduct has forever tarnished a once sterling reputation that took years to cultivate.” Bharara added, “We hope that others who might consider breaking the securities laws will take heed from this sad occasion and choose not to follow in Mr. Gupta’s footsteps.” The Justice Department’s campaign has reached onto the trading floors of some of Wall Street’s largest hedge funds and inside the most revered boardrooms of corporate America. Over a three-year stretch, more than 70 traders, bankers, lawyers and corporate executives have been convicted of insider trading crimes.
Judge Jed S. Rakoff of U.S. District Court in Manhattan handed down a more lenient prison sentence than the eight to 10 years stipulated by nonbinding federal sentencing guidelines.
An Indian from Kolkata and a graduate of Harvard Business School, Gupta rose swiftly through the ranks of McKinsey and headed the firm for a decade. He was a trusted adviser to captains of industry, including Henry Kravis of the private equity firm Kohlberg Kravis Roberts & Co. and Peter Dolan, the former chairman of Bristol-Myers Squibb. A noted humanitarian, he has also played a leading role in organizations fighting diseases in poverty-stricken nations.
Gupta is one of 23 people criminally charged in a seven-year insider trading conspiracy orchestrated by Rajaratnam, who headed the Galleon hedge fund and was convicted in 2011.
In May, a jury found Gupta guilty of providing Rajaratnam with advanced word of secret, market-moving news that he learned as a Goldman director.
Gupta’s sentence is far less than the 11 years being served by Rajaratnam in a federal prison in Ayer, Mass. But it is in line with prison terms handed down by Rakoff in other recent insider trading cases.
The judge rejected the recommendation from Gupta’s lawyers for a sentence of probation combined with a “rigorous and lengthy program of community service” that included a proposal to work in Rwanda on a health program to combat HIV.
99% other folks who does this may not ever get caught.. that may make you believe that you will be most likely never be in this 1% category of who gets caught. But still once in a while these things do happen and in general create big deterrent for repetition of such things.. It also makes you wonder about how link between personal character and professional character and success.. Are such things worth tarnishing your reputation... Rajat was The icon and legend in his field..
It reminds me of one of my very good friend's email signature..
"Success is Journey.. Not the destination!!!"
how true..
Moment we assume that we are successful.. it is the start of our decline.. in any aspect.. it applies universally..
Good thing about US is that they are good in catching such folks.. even though it is really easy to catch such folks.. In stock market if some one is getting continuous success without any significant failures.. that has to be some kind of insider info.. as a simple rule if you are making more than double of the average market gains over 3-5 years of horizon you have to have some kind of extra information.. It is simply not possible to get continuous extraordinary gains in stock market..
Ex-Goldman Sachs exec gets prison in insider trading case
By Peter Lattman
New York Times
NEW YORK — Rajat Gupta, the former Goldman Sachs and Procter & Gamble director, was sentenced to two years in prison Wednesday for leaking boardroom secrets to former San Francisco hedge fund manager Raj Rajaratnam. Gupta, 63, who ran the consulting firm McKinsey & Co. and served as a top adviser to the foundations of Bill Gates and Bill Clinton, is the most prominent figure to face prison in the government’s sweeping crackdown on insider trading.
He was also ordered to pay a $5 million fine. In a statement, the U.S. attorney in Manhattan, Preet Bharara, said of Gupta, “His conduct has forever tarnished a once sterling reputation that took years to cultivate.” Bharara added, “We hope that others who might consider breaking the securities laws will take heed from this sad occasion and choose not to follow in Mr. Gupta’s footsteps.” The Justice Department’s campaign has reached onto the trading floors of some of Wall Street’s largest hedge funds and inside the most revered boardrooms of corporate America. Over a three-year stretch, more than 70 traders, bankers, lawyers and corporate executives have been convicted of insider trading crimes.
Judge Jed S. Rakoff of U.S. District Court in Manhattan handed down a more lenient prison sentence than the eight to 10 years stipulated by nonbinding federal sentencing guidelines.
An Indian from Kolkata and a graduate of Harvard Business School, Gupta rose swiftly through the ranks of McKinsey and headed the firm for a decade. He was a trusted adviser to captains of industry, including Henry Kravis of the private equity firm Kohlberg Kravis Roberts & Co. and Peter Dolan, the former chairman of Bristol-Myers Squibb. A noted humanitarian, he has also played a leading role in organizations fighting diseases in poverty-stricken nations.
Gupta is one of 23 people criminally charged in a seven-year insider trading conspiracy orchestrated by Rajaratnam, who headed the Galleon hedge fund and was convicted in 2011.
In May, a jury found Gupta guilty of providing Rajaratnam with advanced word of secret, market-moving news that he learned as a Goldman director.
Gupta’s sentence is far less than the 11 years being served by Rajaratnam in a federal prison in Ayer, Mass. But it is in line with prison terms handed down by Rakoff in other recent insider trading cases.
The judge rejected the recommendation from Gupta’s lawyers for a sentence of probation combined with a “rigorous and lengthy program of community service” that included a proposal to work in Rwanda on a health program to combat HIV.
No comments:
Post a Comment