Rajat Gupta should pay $15 mn penalty: US regulator to court

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 a 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.

According to the Notice of Appeal filed by his lawyer Gary Naftalis in US District Court Southern District of New York, Gupta’s “appeal concerns conviction only.”

Apart from the criminal case filed against him by Manhattan’s federal prosecutor Preet Bharara, Gupta faces charges filed by the SEC of “abusing his position of trust” and passing confidential information about Goldman Sachs and Proctor and Gamble to now-jailed hedge fund founder Raj Rajaratnam.

“The court should impose the maximum three-time civil penalty of $15,096,585 dollars to punish Gupta for his terrible breach of trust and his craven, criminal conduct and to deter others from engaging in such conduct in the future,” the SEC said in a motion filed in federal court here.

The Commission has also sought

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