Rajat Gupta should pay $15-m penalty: SEC

Written by Press Trust of India | New York | Updated: Nov 17 2012, 09:27am hrs
The US government has asked a court here to slap a maximum penalty of $15 million on India-born fallen Wall Street titan Rajat Gupta and permanently bar him from serving as director of any publicly-traded firm for his terrible breach of trust by indulging in insider trading.

Weeks after the former Goldman Sachs director was handed down a two-year jail term and fined $5 million by US district judge Jed Rakoff, the US Securities and Exchange Commission (SEC) said he should be ordered to pay the maximum civil penalty of $15 million, which would be thrice the $5 million in gains and losses avoided as a result of his illegal conduct.

Gupta, 63, who is set to begin his prison term in January, has filed an appeal against his conviction in the US Court of Appeals for the Second Circuit. According to the notice of appeal filed by his lawyer, Gupta's appeal concerns conviction only.

Apart from the criminal case filed against him by federal prosecutor Preet Bharara, Gupta faces charges filed by the SEC of abusing his position of trust and passing confidential information about Goldman Sachs.