Thursday 24 April 2014
News updated at 7:07 PM IST
Weather
Max: 34.6°C
Min : 22.8°C
In Bangalore
Generally cloudy

US prosecutors call Gupta 'flight risk'

New York, Nov 27, 2012, (PTI) :

Calling Rajat Gupta a "flight risk" due to his strong personal and financial ties to India, US prosecutors have asked a court here to reject the former Goldman Sachs Director's request to remain free on bail pending appeal of his conviction on insider trading charges.

File Photo63-year-old Gupta, who was sentenced last month to two years in prison, had appealed in the US Second Circuit Court of Appeals to grant him bail pending appeal and had asked for a stay on his surrender date.

The former McKinsey head is set to begin his jail term on January 8 next year.


In a memorandum submitted yesterday by US Attorney in Manhattan Preet Bharara and federal prosecutors Reed Brodsky and Richard Tarlowe, the government said Gupta's request for a stay of his surrender date and release pending appeal should be denied.

The prosecutors said Gupta "poses a risk of flight" due to his "strong ties overseas, including assets, family, and close friends in India and elsewhere, his incentive to flee after sentencing, his substantial means and his demonstrated disrespect for the law and capacity for deceit."

They said due to these concerns, the government had sought and obtained a USD 10 million bond from Gupta after he was arrested in October 2011.

The bond has been secured by the equity in his Connecticut home and co-signed by two individuals.

Gupta also had to surrender his passport and restricted travel conditions were imposed on him.

US District Judge Jed Rakoff had said at the time of Gupta's sentencing that he was not a flight risk but had denied Gupta's request for bail pending appeal.

Gupta was found guilty by a jury after a three week trial in May of passing confidential information about Goldman Sachs to his friend and business associate hedge fund founder Raj Rajaratnam.

The government had used wiretaps as evidence to show that Gupta had called Rajaratnam minutes after getting off Goldman board meetings following which the Sri Lankan billionaire had traded in the shares of the financial giant, making millions of dollars in profit and avoiding massive losses.

Rajaratnam is currently serving his 11-year prison term. He has appealed against his conviction.

Gupta has also been ordered to pay a USD five million fine even as the US Securities and Exchange Commission is seeking a USD 15 million penalty.

In papers submitted with the appeals court earlier this month, Gupta's lawyers argued that he should be granted bail pending appeal because the challenge to his conviction would likely raise several "substantial questions of law," including that the district court was wrong in allowing wiretaps of Rajaratnam to be played at his trial.

The prosecutors have argued that Gupta has not identified a "substantial question of law or fact" that is likely to result in reversal or a new trial.

"The evidentiary challenges advanced in his motion are plainly insufficient to warrant bail," they said.

Go to Top

Photo Gallery
A worker spreads paddy crop for drying at a rice processing unit in Bavla...

A worker spreads paddy crop for drying at a rice processing unit in Bavla...

A helicopter flies past as Bangladesh's naval frigate BNS Abu Bakar participates in multi-country...

A helicopter flies past as Bangladesh's naval frigate BNS Abu Bakar participates in multi-country...

Sachin Tendulkar poses for a photograph with his wife Anjali during his 41st bithday celebrations...

Sachin Tendulkar poses for a photograph with his wife Anjali during his 41st bithday celebrations...

Prime Minister Manmohan Singh showing the ink mark on his finger after casting vote for Lok Sabha...

Prime Minister Manmohan Singh showing the ink mark on his finger after casting vote for Lok Sabha...

Residents trying to salvage their belongings after a massive fire gutted their houses in Patna...

Residents trying to salvage their belongings after a massive fire gutted their houses in Patna...

A honeybee ‘caught’ by a ‘len’s eye’ while feeding on nectar...

A honeybee ‘caught’ by a ‘len’s eye’ while feeding on nectar...

Labourers thrash cornflower stalks in a field during morning hours near Vrindavan...

Labourers thrash cornflower stalks in a field during morning hours near Vrindavan...

Chief Minister of Manipur O Ibobi Singh offers floral tribute at Khomjam War Memorial Complex...

Chief Minister of Manipur O Ibobi Singh offers floral tribute at Khomjam War Memorial Complex...

In this Sunday, March 2, 2014 file photo, Olivia Wilde, and Jason Sudeikis arrive at the ...

In this Sunday, March 2, 2014 file photo, Olivia Wilde, and Jason Sudeikis arrive at the ...

Britain's Prince William and his wife Catherine, Duchess of Cambridge, attend a reception ...

Britain's Prince William and his wife Catherine, Duchess of Cambridge, attend a reception ...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bangalore - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523