Rajat Gupta to be sentenced on Wednesday

Will Judge Jed Rakoff be swayed by the former Goldman director's influential well-wishers or will he deliver stiffer punishment?

All eyes will be on US District judge Jed Rakoff as he sentences former Goldman Sachs Group Inc director Rajat Gupta for insider trading On October 24.

Gupta was held guilty of the charge by a conflicted jury that took about two days to reach its verdict. Gupta, who is also the retired head of consulting organisation McKinsey & Company, was guilty on one count of conspiracy and three counts of securities fraud.

Boardroom fame to courtroom pain

Background

A criminal case was filed against Gupta by the United States Attorney's Office on October 26, 2011 for insider trading. The specific charge was that the ex-Goldman director had passed on sensitive information about Goldman boardroom meetings to Galleon Group LLC hedge fund manager Raj Rajaratnam. Gupta surrendered before the Federal Bureau of Investigation on October 27, 2011, in a move  that was to mark the beginning of the most high profile cases of corporate fraud in American history.

Rajaratnam had already been found guilty in early May 2011, and was subsequently sentenced to 11 years in prison.

As far as Gupta and other stakeholders in the case are concerned, the big question now is: Will Judge Rakoff consider the excellent track record and contributions of one of America's most celebrated corporate personalities or will he treat Gupta on par with Rajaratnam and sentence him accordingly? Will he allow himself to be swayed by Gupta's influential well-wishers or will he go with the prosecution's demand for stiffer punishment?  Only Wednesday will tell.