Rajat Gupta, the former Goldman Sachs Group Inc. (GS) director who’s appealing his conviction for insider trading, said he shouldn’t have to pay the firm as much as $7 million in legal fees and other expenses.
Gupta, 64, who sat on the board of New York-based Goldman Sachs and Cincinnati-based Procter & Gamble Co. (PG), was convicted of passing information he gathered at board meetings to Galleon Group LLC co-founder Raj Rajaratnam. Goldman Sachs, supported by U.S. prosecutors in the case, is seeking restitution from Gupta as a victim of Gupta’s fraud.
Goldman Sachs has “not even begun to satisfy its burden of showing the fees are recoverable,” Gupta said in papers filed today in Manhattan federal court.
Gupta was convicted by a jury in June of one count of conspiracy and three counts of securities fraud. The federal appeals court in New York said that it will hear Gupta’s appeal as early as April 1. It ruled he may remain free on $10 million bail while it considers the case.
The case is U.S. v. Gupta, 12-4448, U.S. Court of Appeals for the Second Circuit (Manhattan).
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