Rajat Gupta to be released on $10 million bail
Rajat Gupta pleaded not guilty to charges of securities fraud and that he passed insider information to Rajaratnam while he was director at Goldman Sachs.
By PTI | Updated:
NEW YORK: Rajat Gupta pleaded not guilty today 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.
The 62-year-old Indian American entered his not guilty plea at his arraignment at a US District court here.
He will be released today on a USD 10 million bond, secured by his home in Connecticut.
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.
Gupta made his first appearance in US Magistrate Court before Judge Kevin Fox after being indicted on six counts of securities fraud.
He was arraigned before Jed Rakoff in the US District Court, Southern District of New York.
Gupta, who surrendered before the FBI earlier in the day, 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's lawyer Gary Naftalis had said earlier that his client was innocent. Gupta "did not trade in any securities, did not tip Rajaratnam so he could trade, and did not share in any profits as part of any quid pro quo," Naftalis said in a statement.
The 62-year-old Indian American entered his not guilty plea at his arraignment at a US District court here.
He will be released today on a USD 10 million bond, secured by his home in Connecticut.
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.
Gupta made his first appearance in US Magistrate Court before Judge Kevin Fox after being indicted on six counts of securities fraud.
He was arraigned before Jed Rakoff in the US District Court, Southern District of New York.
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Gupta, who surrendered before the FBI earlier in the day, 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's lawyer Gary Naftalis had said earlier that his client was innocent. Gupta "did not trade in any securities, did not tip Rajaratnam so he could trade, and did not share in any profits as part of any quid pro quo," Naftalis said in a statement.
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