After the accusations against the Goldman Sachs director, Rajat K. Gupta, for breaching loyalty after he was found leaking information of boardrooms to the hedge fund manager Raj Rajaratnam, he has been convicted over the charges.
He has been charged with the breach of loyalty and has been asked to reimburse more than $6.2 million. This is the amount that the bank had to give to the counsel at the law firm Sullivan & Cromwell for an internal investigation and other legal expenses.
The bank has asked for the money on the basis of the Mandatory Victims Restitution Act. The law allows the victims to receive the compensation for losses because of the insider trading crime by the disloyal employee.
The charges were verified when the judge Rakoff did not find any evidence that spoke in defense of the accused. After checking 542 pages of company's billing records, it was seen that there was a cut in the bill by 10% after there were some outside entries.
A federal judge announced his judgment and asked for two years of imprisonment for him. He is out on bail but has been asked for restitution.
According to Michael Duvally, a Goldman spokesman said that the bank was happy with the fact that Mr. Gupta was asked to pay for the compensation.
- Samsung signs deal with Amazon.in to sell Galaxy K Zoom handset in India
- GE unveils smart LED light bulb – ‘Link’
- Report: iPhone 6 likely to be launched one month earlier than expected
- Huawei officially unveils its new high-end Ascend P7 smartphone
- Samsung launches its ‘Galaxy K zoom’ camera specialized-smartphone