Former Goldman Sachs director Rajat Gupta lost his latest bid to throw out his insider-trading conviction and prison sentence, even after an appeals court last year made it harder to prosecute tipping cases.
Bloomberg News reports that Gupta, 66, convicted in 2012 and now serving a two-year prison term in Massachusetts, asked U.S. District Judge Jed Rakoff to dismiss his case, arguing the U.S. failed to prove he got a personal benefit for passing tips to his friend, billionaire hedge fund manager Raj Rajaratnam. Rakoff ruled Thursday that the appeals court ruling doesn’t help Gupta.
A federal jury in New York found Gupta guilty of passing tips to Rajaratnam about Berkshire Hathaway’s $5bn investment in Goldman Sachs and the bank’s financial results for two quarters in 2008.
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