Ex-Goldman, McKinsey, P&G Executive Convicted of Insider Trading

And here’s your orange jumpsuit Rajat.

From the WSJ:

Rajat Gupta‘s four-decade journey from India to the upper echelons of American business and a board seat at Goldman Sachs Group Inc ended after less than 10 hours of deliberation by a federal jury, which convicted him of insider trading.

The verdict caps the fall of the most prominent figure caught in the government’s drive to stop the leaking of corporate secrets to Wall Street. The U.S. said Mr. Gupta, 63 years old, once one of America’s most-respected corporate directors, was motivated not by quick profits but rather a lifestyle where inside tips are the currency of friendships and elite business relationships.

A former director at Goldman and Procter & Gamble Co., Mr. Gupta was convicted on three counts of securities fraud and one count of conspiracy for passing along confidential boardroom information about Goldman to a hedge fund that earned millions of dollars trading on his tips. He was acquitted of two counts of securities fraud, including the only one relating to P&G.

Mr. Gupta, who is also a former head of McKinsey & Co., faces up to 20 years in prison on each of the fraud charges and up to five years for the conspiracy charge. But his sentence is likely to be significantly lower under federal guidelines. Sentencing is set for Oct. 18…

The 12-member jury, sitting in a New York federal court just blocks from Wall Street, handed up a quick verdict after a four-week trial. Janeat Brown, a 32-year-old fourth-grade teacher who was juror No. 5, said that in the first few hours of deliberations, 11 of 12 jurors believed Mr. Gupta was guilty.

By contrast, jurors deliberated 12 days last year before convicting hedge-fund titan Raj Rajaratnam, who now is serving an 11-year prison term. Some jurors shed tears after the verdict was read, as Mr. Gupta’s daughters, who had sat in the front row throughout the trial, sobbed and hugged one another.

“We wanted him to walk, go home to his family, live a very prosperous life,” said juror Ronnie Sesso, a 53-year-old youth advocate in New York. “I struggled with everything…. But looking at the evidence made it clear…” – Chad Bray, Michael Rothfeld and Reed Albergotti.

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