Rajat Gupta pleads not guilty in insider trading, released on $10 mn bail

NEW YORK: Rajat Gupta, who pleaded not guilty to charges of securities fraud and that he passed insider information to his billionaire friend Raj Rajaratnam while he was director at Goldman Sachs and Procter & Gamble, was released today on a USD 10 million bond.

The 62-year-old Indian American had entered his not guilty plea at his arraignment at a US District court here today.

He was released on a USD 10 million bond, secured by his home in Connecticut. Gupta had made his appearance in US Magistrate Court in New York before Judge Kevin Fox.

Following his presentment, he was arraigned before US District Judge Jed Rakoff in the US District Court, Southern District of New York.

Gupta, who surrendered earlier before the FBI, was indicted in a six count indictment on securities fraud. He is accused of sharing confidential information about investments at Goldman Sachs with hedge fund manager Raj Rajaratnam, the Sri Lanka born founder of Galleon Group.

He is charged with one count of conspiracy to commit securities fraud and five counts of securities fraud. He faces a maximum penalty of five years in prison on the conspiracy charge and 20 years in prison on each of the securities fraud charges.

Gupta, who appeared in court wearing a light blue shirt, has also been ordered to turn over his passport, with travel limited to the continental United States.

A US Attorney's office official said Gupta has been "released by his own signature."