Goldman paid bulk of Rajat Gupta's legal fees - NYT

June 18 Mon Jun 18, 2012 10:59pm EDT

June 18 (Reuters) - Goldman Sachs has paid for the bulk of former board member Rajat Gupta's legal defense in an insider trading case that ended in his conviction, the New York Times reported, citing two people with direct knowledge of the matter.

Gupta, a consummate business insider who also sat on the board of Procter & Gamble, was convicted on Friday of leaking secrets about Goldman at the height of the financial crisis, a major victory for prosecutors seeking to root out illicit trading on Wall Street.

Procter & Gamble also paid some of the $30 million in legal fees, the paper reported.

Under a deal reached before the trial, Gupta agreed to reimburse Goldman for the legal costs if he were convicted, the New York Times said.

However, the investment bank must continue to pay the bills until Gupta's appeal, which may take a couple of years, the paper reported.

Goldman did not immediately respond to a request for comment. Procter & Gamble and Gupta's lawyers could not be reached for comment outside regular U.S. business hours.

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (1)
xyz2055 wrote:
$30M in legal fees? That is completely and utterly absurd! Just out of morbid curiosity…how much did he make from insider trading?

Jun 18, 2012 11:07pm EDT  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

A tourist takes a plunge as she swims at Ngapali Beach, a popular tourist site, in the Thandwe township of the Rakhine state, October 6, 2013. Picture taken October 6, 2013. REUTERS/Soe Zeya Tun (MYANMAR - Tags: SOCIETY) - RTR3FOI0

Where do you want to go?

We look at when to take trips, budget considerations and the popularity of multigenerational family travel.   Video