Former Goldman Sachs board member jailed for two years

  • A former Goldman Sachs board member who was found guilty of four criminal counts of insider trading was sentenced to two years in prison on Wednesday.

    Rajat Gupta, 63, had leaked boardroom secrets to Raj Rajaratnam, a former hedge fund manager currently serving an 11-year prison sentence.

    U.S. District Court Judge Jed Rakoff also ordered Gupta to pay a $5 million fine.

    Following the announcement of the verdict, Gupta said he regreted the impact the case had had on his family and friends.

    Reading from a statement, he said: "The last 18 months have been the most challenging period of my life since I lost my parents as a teenager…I've lost my reputation I built for a lifetime. The verdict was devastating."

    Gupta was found guilty in June.

    During the court proceedings, the jury heard secret recordings of conversations between him and Rajaratnam.

    The trial focused on a phone call made to Rajaratnam on September 23, 2008, moments after Gupta had listened to a private conference call discussing a $5 billion investment in Goldman Sachs by Warren Buffett's company Berkshire Hathaway.

    The deal was due to be made public after stock markets closed that day.

    According to phone records, Rajaratnam bought $40 million in Goldman Sachs stock after the phone call and earned close to $1 million.