Ex-Goldman director Gupta gets two-year prison sentence – Yahoo! News

Ex-Goldman director Gupta gets two-year prison sentence – Yahoo! News.

Former Goldman Sachs Group Inc board member Rajat Gupta-nader-nazemi

Former Goldman Sachs Group Inc board member Rajat Gupta

Don’t do the crime, if you can’t do the time. Just because he gave charity, does it mean that he should get a break from the law. Two years is loo light a sentence. This once again shows that so called white-collar crime goes under-punished.

NEW YORK (Reuters) – Disgraced Wall Street titan and philanthropist Rajat Gupta was sentenced to only two years in prison, a much lighter sentence than U.S. prosecutors had demanded, even though the federal judge who imposed it on Wednesday called his insider trading crimes “disgusting” and “a terrible breach of trust.”

Gupta was also ordered to pay a $5 million fine. He was convicted in Manhattan federal court last June for leakingGoldman Sachs boardroom secrets to Raj Rajaratnam, the hedge fund manager at the center of a U.S. government crackdown on insider trading over the past four years.
Some legal experts said the sentence came as a surprise, while others said the judge struck a fine balance.
U.S. District Judge Jed Rakoff told a somber courtroom audience, including Gupta’s wife and four adult daughters, that the illegal sharing of corporate secrets at the height of the 2008 financial crisis “was the functional equivalent of stabbing Goldman in the back.”

Super-rich stash $21 tn in offshore havens — RT

Super-rich stash $21 tn in offshore havens — RT.

Nader Nazemi-21 Trillion Dollars Siphoned to Offshore Banks !

21 Trillion Dollars Siphoned to Offshore Banks !

Holy Crap ! This is beyond mind boggling. The Bankers and Uber-Rich are in cahoots ! So conspiracy theorists were right  all along. There is a small tiny elite that bankroll politicians, governments, coups, revolutions and the entire world. 21 Trillion Dollars is 5 trillion dollar more than the entire US GDP !!! 

Wealthy tax evaders, aided by private banks have exploited loopholes in tax legislation and stashed over $21 tn in offshore funds, says a report. The capital drained from some developing countries since 1970 would be enough to pay off national debts.

The findings show the gap between the haves and the have-nots is much larger than previously thought.

The document, entitled The Price of Offshore Revisited, was commissioned by The Tax Justice Network campaign group and leaked to the Guardian. The report provides the most detailed valuation of the offshore economy to date.

“The problem here is that the assets of these countries are held by a small number of wealthy individuals while the debts are shouldered by the ordinary people of these countries through their governments,” wrote James Henry, expert on tax havens and former chief economist at consultancy McKinsey in his report.

The document cites the world’s leading private banks as cherry-picking from the ranks of the uber-rich and siphoning their fortunes into tax-free havens such as Switzerland and the Cayman Islands.

The wealth of the super-rich is “protected by a highly paid, industrious bevy of professional enablers in the private banking, legal, accounting and investment industries taking advantage of the increasingly borderless, frictionless global economy.”

Henry writes that a large part of the trillion dollar hoard belongs to around 92,000 individuals, an elite class of super-rich who make up 0.001 percent of the global population.

No Jail Time for Cooperating Witness in Galleon Case – NYTimes.com

No Jail Time for Cooperating Witness in Galleon Case – NYTimes.com.

Nader Nazemi-Anil Kumar

Anil Kumar, right, with his lawyer Thursday outside court in Manhattan after being sentenced for insider trading.

Cooperate and you and you are off the hook ? Interesting.

Anil Kumar has been the consummate cooperator. Over the last two years, he detailed an illicit scheme with a billionaire hedge fund titan, decoded secretly recorded conversations and gave stunning performances in two of the largest insider trading cases in history.

The government thanked him by letting him off with no jail time.
On Thursday, Mr. Kumar, a former top partner at the prestigious consulting firm McKinsey & Company, was sentenced to two years of probation for insider trading. He will have to repay more than $2 million in ill-gotten gains.

Rajat Gupta Conviction May Deter Insider Trading — For Now

Rajat Gupta Conviction May Deter Insider Trading — For Now.

Nader Nazemi

Former Goldman Sachs director Rajat Gupta, left, and his attorney Gary P. Naftalis leave federal court in New York on Friday.

The conviction of Rajat Gupta on insider trading charges is a real score for government prosecutors — maybe the biggest such conviction in history.

It will also probably barely deter other people from insider trading.

“I think for the next few days people will talk about Gupta, and for the next few days they will be more thoughtful about their actions,” said Dan Ariely, a behavioral economist at the Duke University Fuqua School of Business. “And then it will stop.”

Rajat Gupta Convicted of Insider Trading – NYTimes.com

Rajat Gupta Convicted of Insider Trading – NYTimes.com.

Nader Nazemi

Rajat K. Gupta, the retired head of the consulting firm McKinsey & Company and a former Goldman Sachs board member, was found guilty on Friday of conspiracy and securities fraud. He is the most prominent business executive convicted in a wave of prosecutions that followed the government’s sweeping investigation into insider trading on Wall Street. 

Nader Nazemi
Preet S. Bharara, the United States attorney in Manhattan.

“Having fallen from respected insider to convicted inside trader, Mr. Gupta has now exchanged the lofty board room for the prospect of a lowly jail cell,” Preet Bharara, the United States attorney in Manhattan said in a statement.

Rajat Gupta’s Daughter Testifies at His Insider Trading Trial – NYTimes.com

Rajat Gupta’s Daughter Testifies at His Insider Trading Trial – NYTimes.com.

Geetanjali Gupta’s education at Harvard Law School may not have included a class on how to testify, but she was poised and articulate in answering questions on the witness stand on Tuesday at her father’s criminal trial.

Ms. Gupta was among the final defense witnesses in the trial of Rajat K. Gupta, the onetime head of the consulting firm McKinsey & Company. The government has accused Mr. Gupta, a former director of Goldman Sachs and Procter & Gamble, of leaking boardroom secrets from those two companies to Raj Rajaratnam, the fallen hedge fund titan convicted of insider trading last year.

Lawyers for Mr. Gupta rested their case without calling him to testify in his own defense. On Friday, Mr. Gupta’s lawyers said it was “highly likely” that their client would take the stand, but they reversed course over the weekend.

The defense’s case amounted to 12 witnesses, many of whom were called to tell the jury about Mr. Gupta’s integrity and honesty. Several of them worked closely with Mr. Gupta, 63, on his extensive efforts to combat AIDS, tuberculosis and malaria.

Other witnesses testified about acrimony that had developed between Mr. Rajaratnam and Mr. Gupta. A crucial component of the defense is that the two men had a falling out in the fall of 2008 after Mr. Gupta lost his entire $10 million investment in a fund run by Mr. Rajaratnam. As a result, the defense has argued, Mr. Gupta had no incentive to pass tips Mr. Rajaratnam during that period.

Mr. Gupta’s dispute with Mr. Rajaratnam was the focus of Ms. Gupta’s testimony.

She told the jury about a conversation that she had with her father in September 2008, a period of great turmoil in the financial markets. She said that while in the library of her parent’s house in Westport, Conn., Mr. Gupta talked about the difficulties related to an investment that he had with Mr. Rajaratnam.

“He was upset,” Ms. Gupta said. “He was stressed, running his hand through his hair, and he is usually a very calm and collected person.”