Rajat Gupta Fails to Have Insider-Trading Conviction Tossed

  • Former Goldman Sachs director served 19 months in prison
  • Gupta was convicted in 2012 of passing tips to Raj Rajaratnam
Rajat Gupt exits federal court after being sentenced for insider trading in New York in 2012.Photographer: Victor J. Blue/Bloomberg
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A federal appeals court in Manhattan declined to throw out former Goldman Sachs Group Inc. director Rajat Gupta’s 2012 insider-trading conviction, upholding a lower-court ruling.

Gupta, who was released from prison in 2016 after serving 19 months, argued that the conviction should be thrown out because U.S. prosecutors failed to prove he got a personal benefit for passing tips to his friend, billionaire hedge fund manager Raj Rajaratnam.