(Adds recommended prison)
By Jonathan Stempel
NEW YORK, April 17 Former Goldman Sachs Group
Inc director Rajat Gupta is expected to begin his
two-year prison term on June 17 for insider trading.
U.S. District Judge Jed Rakoff in Manhattan directed Gupta
to surrender by 2:00 p.m. EDT (1800 GMT) on that date to start
serving his sentence, according to an order issued on Thursday.
Gupta, 65, was convicted in June 2012 on securities fraud
and conspiracy charges for having fed tips, from Goldman board
meetings in the second half of 2008, to longtime friend Raj
Rajaratnam, founder of the Galleon Group hedge fund firm.
A three-judge panel of the 2nd U.S. Circuit Court of Appeals
upheld the conviction on March 25, rejecting Gupta's claim that
Rakoff improperly admitted wiretap evidence at trial.
Two weeks later, on April 8, Gupta asked the panel to
reconsider, or for the entire 2nd Circuit to review the case.
Gary Naftalis, a lawyer for Gupta, did not immediately
respond to a request for comment.
Gupta is also a former global managing director of the
consulting firm McKinsey & Co. He is the top corporate official
convicted in a broad federal insider trading probe unveiled in
October 2009, when charges against Rajaratnam were announced.
It is unclear where Gupta will serve his sentence. Rakoff
agreed to recommend that he be assigned to a medium security
prison in Otisville, New York, about 70 miles (113 km) northwest
of New York City. The Federal Bureau of Prisons will make the
decision. That agency did not return a call seeking comment.
Rajaratnam is appealing his own conviction to the U.S.
Supreme Court. He is serving an 11-year prison term.
The government has won about 80 convictions and guilty pleas
in the insider trading probe.
On April 11, a federal judge approved a guilty plea by
Steven Cohen's SAC Capital Advisors LP to resolve criminal
insider trading charges, including a $1.2 billion penalty.
The case is U.S. v. Gupta, U.S. District Court, Southern
District of New York, No. 11-cr-00907.
(Reporting by Jonathan Stempel in New York; Additional
reporting by Nate Raymond; Editing by Bernadette Baum and