Rajat Gupta, the ex-McKinsey chief and Goldman Sachs board member who was convicted earlier this year of leaking insider information to hedge fund manager Raj Rajaratnam, failed in his bid to avoid jail time yesterday after a New York judge sentenced him to two years behind bars.
Manhattan Judge Jed Rakoff also ordered Gupta, left, to pay a $5m (£3m) fine. Although significantly lower than the 10 years in prison sought by prosecutors, the sentence was harsher than the order of probation and community service requested by Gupta's lawyers. Rajaratnam, whose lawyers are due to ask judges to quash his conviction in an appeal hearing today, was last year sentenced to 11 years in jail. The prosecutor, US attorney Preet Bharara, said Gupta's "conduct has forever tarnished a once-sterling reputation that took years to cultivate". He warned: "We hope others who might consider breaking the securities laws will take heed from this sad occasion."