710 KNUS News

6/11/2014 2:53 PM
Ex-Goldman board member loses bid to delay prison

NEW YORK (AP) — A former board member at both Goldman Sachs and Procter & Gamble must report to prison as scheduled next week for his conviction on insider trading charges after a Supreme Court justice on Wednesday rejected his last-minute request to delay it.

Without issuing a formal written order, Justice Ruth Bader Ginsburg in Washington denied Rajat Gupta's request to delay reporting until his appeals are finished.

In paper dated Monday, Gupta's lawyers asked to delay his June 17 date to begin serving a two-year prison sentence for his 2012 conviction on conspiracy and securities fraud charges. They cited unique appeal issues, including a claim that Gupta's trial judge should have instructed the jury that proof of his good character may itself give rise to reasonable doubt. The lawyers said it was also likely that he would serve half his sentence before appeals are exhausted.

The government did not respond to the defense request before Ginsburg rejected it. The conviction of Gupta, 65, of Westport, Connecticut, was upheld by the 2nd U.S. Circuit Court of Appeals in New York in March, and Gupta has asked the court to reconsider its decision.

Gupta's attorney, Gary P. Naftalis, declined to comment Wednesday.

Gupta was convicted on charges that he fed tips about Goldman to one-time billionaire hedge fund owner Raj Rajaratnam, who is serving an 11-year prison sentence after his 2011 conviction on insider trading charges. Gupta and Rajaratnam were the most prominent individuals rounded up in the government's five-year crackdown on insider trading.



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(Copyright 2014 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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