<p>Rajat Gupta, the former Indian-American director of Goldman Sachs convicted of insider trading, has been ordered to pay the bank more than $6.2 million for legal expenses connected to his case.<br /><br /></p>.<p>US District Judge Jed Rakoff, who presided over Gupta's criminal trial for allegedly passing tips to convicted hedge fund manager Raj Rajaratnam, gave the ruling Monday in response to a claim filed by Goldman. Gupta, 64, who is free on bail while he is appealing his May conviction by a jury, was sentenced by Rakoff to two years in prison.<br /><br />Goldman had sought $6.9 million in reimbursement from Gupta under a law that allows corporations to get reimbursed as a victim of an insider trading crime by a rogue employee.<br /><br />"Goldman Sachs has proved by a preponderance of the evidence that 90 percent of its tendered expenses were both necessary and incurred during its participating in the investigation and prosecution," Rakoff ruled.<br /><br />After reviewing the firm's 542 pages of billing records, he wrote that Gupta raised no "colourable challenge to the veracity of the records."<br /><br />Rakoff cut the bill by 10 percent, he said, because he noted that there were some extraneous entries.<br /><br />Rajaratnam, convicted of insider trading in 2011, is serving an 11-year prison sentence.<br /><br />Michael Duvally, a Goldman spokesman, said the bank was pleased the court ordered Gupta to pay it restitution.<br /><br />The money that Gupta now has to pay Goldman is separate from the cost of Gupta's legal defence, which has thus far exceeded more than $30 million, according to New York Times.</p>
<p>Rajat Gupta, the former Indian-American director of Goldman Sachs convicted of insider trading, has been ordered to pay the bank more than $6.2 million for legal expenses connected to his case.<br /><br /></p>.<p>US District Judge Jed Rakoff, who presided over Gupta's criminal trial for allegedly passing tips to convicted hedge fund manager Raj Rajaratnam, gave the ruling Monday in response to a claim filed by Goldman. Gupta, 64, who is free on bail while he is appealing his May conviction by a jury, was sentenced by Rakoff to two years in prison.<br /><br />Goldman had sought $6.9 million in reimbursement from Gupta under a law that allows corporations to get reimbursed as a victim of an insider trading crime by a rogue employee.<br /><br />"Goldman Sachs has proved by a preponderance of the evidence that 90 percent of its tendered expenses were both necessary and incurred during its participating in the investigation and prosecution," Rakoff ruled.<br /><br />After reviewing the firm's 542 pages of billing records, he wrote that Gupta raised no "colourable challenge to the veracity of the records."<br /><br />Rakoff cut the bill by 10 percent, he said, because he noted that there were some extraneous entries.<br /><br />Rajaratnam, convicted of insider trading in 2011, is serving an 11-year prison sentence.<br /><br />Michael Duvally, a Goldman spokesman, said the bank was pleased the court ordered Gupta to pay it restitution.<br /><br />The money that Gupta now has to pay Goldman is separate from the cost of Gupta's legal defence, which has thus far exceeded more than $30 million, according to New York Times.</p>