(Adds lawyer declining to comment, paragraph 5)
By Jonathan Stempel
June 11 Former Goldman Sachs Group Inc
director Rajat Gupta has failed to persuade the U.S. Supreme
Court to delay the June 17 start of his two-year prison term
while he pursues an appeal of his insider trading conviction.
Gupta, also a former global managing director of the
consulting firm McKinsey & Co, had asked the country's highest
court for permission to stay free during his appeal, after the
2nd U.S. Circuit Court of Appeals in Manhattan on May 30 denied
him the same request.
Justice Ruth Bader Ginsburg, who handles emergency
applications from the 2nd Circuit, on Wednesday denied Gupta's
request to stay out of prison.
The full 2nd Circuit has yet to decide whether to rehear
Gupta's appeal of his conviction, which a three-judge panel of
that court upheld on March 25.
Gary Naftalis, a partner at Kramer Levin Naftalis & Frankel
who represented Gupta, declined to comment. Seth Waxman, a
WilmerHale partner and former U.S. solicitor general, is also
among Gupta's lawyers.
Gupta, 65, is the highest-ranking corporate official to be
convicted in the government's multi-year probe of insider
trading in the hedge fund industry.
A Manhattan federal jury in June 2012 convicted him of
passing tips about Goldman, including news about its results and
a $5 billion investment from Warren Buffett, to his friend Raj
Rajaratnam, founder of the Galleon Group hedge fund firm.
In appealing his conviction, Gupta is challenging the use of
wiretap evidence and the jury instructions.
Gupta's lawyers have said the appeal is likely to result in
a reversal of the conviction and a new trial.
The trial judge, Jed Rakoff, has agreed to recommend that
Gupta be assigned to a medium-security prison in Otisville, New
York, about 70 miles (113 km) northwest of New York City.
Rajaratnam is serving an 11-year prison term after his 2011
insider trading conviction, in a case also built with wiretap
evidence. He is appealing his conviction to the Supreme Court.
(Reporting by Jonathan Stempel in New York; Editing by Howard
Goller and Dan Grebler)