Ex-Goldman director Gupta ordered to reimburse $6.2m

27 February 2013

Ex-Goldman director Gupta ordered to reimburse $6.2m
Rajat Kumar Gupta - former Director of Goldman Sachs Group Inc.

Ex-Goldman Sachs director Rajat Gupta has been ordered to reimburse his former employer's legal costs related to his criminal insider trading case.

During a hearing in New York earlier this week, District Judge Jed Rakoff ruled that Mr Gupta needs to pay the major US bank just over $6.2 million to cover the expenses it incurred after the professional's conviction for breaching financial regulations last July.

This case was brought about amid allegations that the executive had passed on confidential information in Goldman board meetings to Galleon Group's hedge fund manager Raj Rajaratnam.

Initially, the bank was seeking to recover $6.9 million from Mr Gupta, but Judge Rakoff decided the group was only entitled to 90 per cent of its request.

Speaking during his ruling, the official said the court had "no difficulty" in concluding that "nearly all of the expenses Goldman Sachs here claims were the necessary, direct and foreseeable result of the investigation and prosecution of Gupta's offense of conviction".

By Gary Cooper

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