Rajat Gupta Got Two Year Jail Term For Inside Trading

Rajat Gupta, the former Goldman Sachs Group Inc. (GS) director and McKinsey & Co. Managing director on 25 October 2012 was sentenced to two years in prison for passing inside tips to his business partner.

Rajat Gupta was convicted in June 2012 on three counts of securities fraud and one count of conspiracy.

It was alleged by the US prosecutors that Rajat Gupta used his positions on the boards of Goldman and Procter & Gamble, one of the world's largest consumer goods companies, to pass information to hedge fund manager Raj Rajaratnam, who then drew millions of dollars in profit from trading on it.

Rajat Gupta is 63 years old. He was handed for a two-year prison term by US District Court Judge Jed Rakoff and he was also ordered to pay a USD 5 million fine.

Rajat Gupta, the India-born businessmen in the US who was considered to be an icon is now being called "deceptive and dishonest" after his conviction on insider trading charges.