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Ex-Goldman board member to stay free during appeal

Published on NewsOK Modified: December 4, 2012 at 2:46 pm •  Published: December 4, 2012

"Mr. Gupta's principle defense was that he never would have provided a benefit on those calls because he had come to believe he had swindled him," Waxman said. "Mr. Gupta was enraged to learn that Rajaratnam had cheated him out of millions of dollars."

Assistant U.S. Attorney Reed Brodsky said Gupta was convicted through the use of "direct evidence and powerful circumstantial evidence." He urged the court to force Gupta to serve his sentence before the appeal is heard.

The 64-year-old Westport, Conn., resident is the biggest catch yet in the government's five-year crackdown on insider trading that utilized wiretaps and numerous cooperators. The prosecution against Rajaratnam and co-conspirators alone resulted in more than two dozen convictions. Rajaratnam is serving an 11-year prison term after he was convicted at trial last year. Prosecutors said he made as much as $75 million illegally.

At Gupta's trial, the government said Gupta notified Rajaratnam as soon as he learned that Warren Buffett's Berkshire Hathaway planned to invest $5 billion in Goldman in September 2008 at the height of the country's financial crisis. Prosecutors said Gupta told Rajaratnam a month later that Goldman was facing an unexpected quarterly loss before it was announced publicly.