File-AP Photo/Craig Ruttle
Rajat Gupta Asked to Pay $6.2 Mn to Goldman Sachs

India-born former Goldman Sachs director Rajat Gupta has been ordered to pay USD 6.2 million for legal expenses incurred by his former employer during his trial in one of the biggest insider trading schemes in the US.

Gupta, 64, was sentenced to two years of imprisonment last year after he was convicted of leaking secrets about the company to his friend and business associate Galleon founder Raj Rajaratnam, who is serving an 11-year prison term.

Gupta, who is currently on bail while applying his conviction, was told to pay USD 6.2 million for legal fees to Goldman Sachs by federal Judge Jed Rakoff in New York.

Goldman had sought USD 6.9 million as reimbursement from former McKinsey head Gupta, which he did not contest in the court.

After reviewing the firm's 542 pages of billing records related to the case, Judge Rakoff however cut the bill by 10 per cent noting that there were some extraneous entries in the 542 pages of billing records submitted by Goldman Sachs.

"On a few occasions the number of attorneys staffed on a task - while perhaps perfectly appropriate on the assumption that Goldman Sachs wished to spare no expense on a matter of great importance to it - exceeded what was reasonably necessary" under the statute, Rakoff wrote.

In 2008, Gupta's net worth was USD 84 million.

The money that Gupta now has to pay Goldman is separate from the cost of his legal defence, which has thus far exceeded more than USD 30 million.

That legal tab has been paid for by Goldman because the bank's bylaws require it to pay the legal fees of its top officers and directors. But under a deal reached before his trial, Gupta agreed that if he was found guilty of insider trading, he would reimburse the bank for the legal fees advanced to him, the New York Times reported.

A Goldman spokesman, Michael Duvally, said the bank was pleased the court ordered Gupta to pay it restitution.

A lawyer for Gupta said his client plans to appeal against the ruling.

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Digression

3/D-20
Feb 27, 2013
06:16 AM

Ashok .... you will have to wish to be born in the US in the next life. Of course, to become a lawyer in the good ole USA, you have to study Law but good news for you ... your family status at birth will not determine whether you can or not become a lawyer.

Waise the grass always looks greener on the other side (from a distance).

Arun Maheshwari, Bangalore
2/D-67
Feb 26, 2013
12:05 PM

Rajat Gupta gets two years and comes out to have almost US$50 million to spend for the rest of his life.... That should be a good life for a criminal....

Non Fanatic, London
1/D-64
Feb 26, 2013
11:32 AM

 One would wish to born a lawyer in the US in one's next lifetime.

ashok lal, mumbai
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