Rajat Gupta penning book to tell his story

Rajat Gupta penning book to tell his story

Rajat Gupta penning book to tell his story

India-born former Goldman Sachs Director Rajat Gupta, who is scheduled to begin his prison term on June 17, hopes to release a book telling his side of the story and visit India once he completes his two-year sentence, according to a media report.

Gupta, 65, lost his final bid to avoid reporting to jail after the US Supreme Court last week denied his application to remain free on bail while his insider trading case is reheard.

While US district judge Jed Rakoff had recommended that Gupta be assigned to a medium-security prison in Otisville, about 70 miles northwest of New York, a report in the New York Times said he has been assigned to the satellite camp at FMC Devens in Ayer, Massachusetts, close to where his one-time friend Raj Rajaratnam is jailed for insider trading.

Sri Lanka-born former hedge fund billionaire Rajaratnam is lodged in FMC Devens' federal medical center. He is a diabetic and FMC Devens' medical unit provides dialysis. His facility is next to the satellite camp where Gupta will be.

According to the report, Gupta's friends say for the past one year he has been working on a book that will tell his side of the story.

Gupta has also apparently told his friends that once he is released from prison, the first place he wants to visit is native country.

While chances of resuscitation of Gupta's future in the US are very bleak, he could try lining up consulting assignments from companies in India, the report said.

Indian industrialist Mukesh Ambani was among the several people who had written letters of support for Gupta during his insider trading trial.

"But his sterling calling card—offering Indian executives unparalleled access to American chief executives and politicians—will be badly tarnished," the report added.

According to a retired Bureau of Prison's Correctional Treatment Specialist, Gupta would serve approximately 85 per cent of his two-year sentence and could be eligible for transfer to a halfway house prior to his release date.

Although the statutory maximum halfway house is 12 months, white collar offenders with family and financial resources can expect a minimal amount of halfway house placement or direct home detention.

"Based on that, Gupta could be back home by the end of 2015. When Gupta reports to Devens, he will have fought his conviction and efforts to stay out of prison for a longer period of time than he will even be in prison" he said.

The report said that Gupta, in his last few weeks of freedom, has been spending time with each of his four daughters, going on short trips with them. Another issue that he has been trying to sort and put in order are his finances.

Since his 2012 conviction, Gupta has been fighting a hard legal battle to stay out of prison and appeal his conviction.

The report said his total legal costs, including fees paid to his trial lawyers, consultants and experts, stands at roughly USD 40 million.

He would also be required to reimburse to Goldman Sachs, which has been footing his legal bills so far due to bank's bylaws that require it to pay the legal fees of its top officers and directors. Goldman is required to pay until Gupta has exhausted all avenues of appeal.

A federal judge had last year ordered Gupta to pay Goldman Sachs more than USD 6.2 million for the legal expenses incurred by the bank.

"Once all his appeals are exhausted, Gupta is likely to owe Goldman about USD 50 million," the report said.

During his trial, a JPMorgan Chase private banker had testified that Gupta had a net worth of more than USD 130 million around 2008.

Gupta also has been paying regular visits to his villa in the Palm Island Resort in southwest Florida that has become his "legal residence."

"In the event that his legal appeals are exhausted and he is forced as a result to pay the legal costs for his defense, he will be able to shield his home, regardless of its value, in any bankruptcy court proceeding if he is domiciled in Florida, rather than in Connecticut, which had been his legal residence," the report said.

Gupta, once the most sought-after Wall Street executives and a regular at power meetings, owns a waterfront property in Westport, Connecticut as well as a house in Colorado.