Financial troubles mount for Gupta as he appeals his conviction.
Bureau Report
NEW YORK: Former Goldman Sachs director Rajat Gupta has been asked to reimburse $6.22 million to the bank to help cover its legal expenses related to his criminal insider trading case, US District Judge Jed Rakoff ruled today.
Goldman had sought to recover $6.91 million from Gupta, and Rakoff said the bank had proved it was entitled to 90 percent of what it requested.
Gupta is appealing his June 15, 2012 conviction and two-year prison term for leaking boardroom secrets to Raj Rajaratnam, the hedge fund manager at the center of a multi-year US government crackdown on insider trading.
Earlier this month, Wibbert Investment Co. sued Rajaratnam and Gupta and their Asian-focused New Silk Route private equity fund, alleging they hid information Wibbert was owed as a $37.5 million investor and demanding access to the fund’s books.
The complaint, which also targets various entities related to New Silk Route PE Asia Fund LP as well as fund principal Parag Saxena, asserts that the defendants have for months “stonewalled” Wibbert’s attempts to obtain information about what has happened with its investment.