Rajat K. Gupta, the former Goldman Sachs and Procter & Gamble Co. board member, was sentenced Wednesday to two years in prison for his involvement in an insider trading scheme with his business partner and friend Raj Rajaratnam, the founder and former head of the Galleon Group, according to Preet Bharara, the United States Attorney for the Southern District.
Gupta, 62, of Beachside Ave., Westport, was also ordered to pay a $5 million fine.
He was charged March 1 by Securities and Exchange Commission investigators with tipping off friend and business associate Raj Rajaratnam with confidential board information about Goldman Sachs and Procter & Gamble.
John Nester, a spokesman for the SEC in Washington, said that the main penalties in an insider trading case are disgorgement, or the paying back or any illicit gains, a financial penalty of up to three times the disgorgement amount, and a bar from being a company officer or director.
Gupta was convicted on June 15, following a four-week jury trial. He was sentenced by U.S. District Judge Jed S. Rakoff.
Interested in Westport's news, events, community bulletins, blogs and businesses? Sign up for the free Westport Patch daily newsletter, "like" us on Facebook and follow us on Twitter.