You never know what life has in store for you. It’s best to prepare yourself for the worst possible thing that can happen to you! But why I’m I giving you can advice? This is because I just read about the famous Rajat Gupta case and this is the first thing that crossed my mind.
This man started off as an orphan, struggled his way up, graduated from IIT Delhi, became the head of McKinsey, was named the first managing director of a firm born out of the US, and now ended up in conviction for insider trading. As they say, a fall is inevitable after a rise. Fate only proved that Rajat Gupta is no exception.
This man who was the favorite in the firm was found guilty of four out of six counts. Mr. Gupta who was so popular enough to be elected twice as CEO was found guilty of securities fraud and conspiracy.
For those who are unaware let me tell you that the minimum punishment for securities fraud is not less than twenty years for conspiracy it’s a minimum of five years. This means that Rajat Gupta has to spend at least the next twenty-five years of his life in prison.
Unfortunately for Gupta, there is not much scope even in the higher courts. The man will be on bail until the official judgments are out on the 18th of October.
Goldman Sachs is trying very hard to do something for the man who devoted so many years of his service to the firm. It has spent as much as 30 million dollars for his defense.
That’s a huge sum, isn’t it? Apparently, there was an agreement between Mr. Gupta and Goldman that the latter will pay all the amount needed for his trial but if found guilty the former will have to repay all of it.
The good news is judge Mr. Rakoff who is dealing with the case right now is known for being as lenient with people as Mr. Gupta. Now we need to see what happens next. Hey! Don’t wait for me to ask. Just tell me what you think about the issue. You know how much I love and value your opinion, don’t you?
Source: Rajat Gupta’s fall ‘from the lofty board room to lowly jail cell’ and Rajat Gupta found guilty of insider trading, faces 25 yrs in jail
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