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Monday, October 24, 2016

The Biggest Insider Trading Scandal Of The Decade Proves That Rich Guys Facing Jail Time Can Still Win a Break

July 5 (Bloomberg) — Rajat Gupta, the former McKinsey & Co. chief and pal of imprisoned inside trader Raj Rajaratnam, has one goal after being convicted last month of securities fraud: To convince federal Judge Jed Rakoff that he deserves minimal jail time.

There is a compelling public interest, after all, in keeping white-collar criminals on the street. The financial markets need liquidity, as any summer intern at a Washington lobbying firm can tell you, and we would be facing dark days if we lost our best talent at leaking confidential information. What good is a tipster in a place where high-frequency trading means swapping cigarettes for a batch of washed and folded laundry?

I don’t mean to suggest that his lawyers and throng of big- name business friends aren’t already doing a serviceable job of portraying Gupta as an honorable man who doesn’t belong in jail. Gupta’s lawyer, Gary P. Naftalis, pushed so hard to be allowed to tell the jurors about Gupta’s philanthropy that Rakoff had to offer a reminder: Even Mother Teresa would be judged on the evidence — but presumably not her saintliness — if charged with robbing a bank. And on the website, a collection of supporters cite everything from Gupta’s role as a founding board member of the Global Fund for AIDS, malaria and tuberculosis to his selfless offer to pay for a friend’s son to go to college.

The effort to tout his charity and good heart is a respectable start for the former Goldman Sachs Group Inc. director. But it doesn’t go far enough.

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  • widollar

    Rajat Gupta is a petty crook and he already been exposed for acting like a fool. His giant ego has been taken for a ride he never dreamed possible. With is stupid illegal actions he has shown the world how shallow he really is. Given all is successes he will now be rememberd as a petty crook. Sure the judge will give him a few months in jail when it should be a few years, but the bottom line is this guy’s reputation is forever tarnished. Remember, there are two sets of laws, one for the average citizen and the special laws for special crooks like Rajat Gupta.

    • This guy will get less time then Martha Steward.

  • Portia002

    In my mind there is absolutely no difference in white-collar crime and every other kind of crime, but obviously in this real world, there is a huge difference. Who cares about their philanthropy? The kind of money these guys rake in HAS to be given away to get the tax breaks. When your the little man stealing some chewing gum, you don’t get to talk about your philanthropy.

    • Kansan

      There are over 200 “third strikers” doing life in California for shoplifting. All it took was a couple of joy riding felony convictions as teen agers, then shoplifting videotapes from K-Mart for your kids, or a box of donuts from a 7-11.

      The for-profit prison industry lobbied for those draconian sentences as committee members and chairs at the American Legislative Council, a 501(c)3 that doesn’t do anything save for corporate buying of state legislators and writing the legislation they need to rip off the taxpayer or remove regulations meant to protect the rest of us.

    • DurdyDawg

      But there is a big difference in white collar crime vs other crimes and it has to do with the stone mansion you serve your time in. Both are similar in effect being akin to a holiday inn.. but where one controls the key, the other has none.

  • William Deutschlander

    When the Republicraps control the “bench”, they care for their own, a GOP trademark!

  • MAXIMUM nothing less. They should all be behind bars .

  • Kansan

    A regular Robin Hood, being pursued by the Sheriff of Nottingham.

    Just like poor Jack Abramoff, who sent millions to poor Israeli settlers so the could shoot Palestinian children who resented their parents’ land being stolen.

    What Martha Stewart did, given the amount of her transaction, was pissant compared to these rapacious swindlers.

    I would think a sentence ten times as long as hers would be appropriate for him.

    However, Eric Holder being in charge, a man who never met a billionaire he didn’t like, don’t expect much.

  • howa4x

    If he is guilty of a crime punishible by incarceration then send him to jail. We can’t have one set of rules for Wall st and one for the rest of us. What they need on Wall st is the Law and Order that the republicans always run on. They always say they want to be tough on crime so here is your chance. Where is Mitt on this? He should be asked if Wall st criminals should get a special break. Wall st wants to be like the lawless tribal areas in Pakastan but what they really need is a good dose of Elliot Spitzer!!

  • All he did was use the money he made illegally to give to charity—I’m VERY NOT impressed……

  • Eleanore Whitaker

    Worming their way out of the consequences of their corruption and fraudulent actions as usual. Have a suggestion. It’s high time we stopped being the butts of their financial settlements and fines. We need a law that stops any corporation who has been hit with a fine or financial settlement for corruption or fraud from jacking the prices on their goods and services and absolutely refusing them tax subsidies, until all of their fines and settlements are paid in full. Anything less is nothing more than dumping these fines and settlements on consumers and taxpayers.

  • Bob Martin

    The Ex-Enron Chief Executive Officer Ken Lay was an extremely beloved figure in Houston and in Texas. Some were so devoted to him before “the fall” as to gladly sacrifice all for him. He was a philanthropist beyond compare and treated his employees with utmost respect one-on-one. Didn’t make him any less guilty of all they said he did and more that was legal but immoral. Noone ever expect to actually be punished at that level of criminal activity.

  • He gave to charities because it’s deductible from pre-taxed income. It wasn’t even his money.