US: Rajat Gupta seeks probation on insider trading charges

New York: Goldman Sachs' India-born former director Rajat Gupta is seeking a sentence of probation accompanied by "rigorous" community service, according to court documents submitted by his lawyer a week before a federal judge here sentences him on his conviction on insider trading charges.

In a 99-page sentencing memorandum submitted in federal court on Wednesday, Gupta's lawyer Gary Naftalis requested that the "court impose a sentence of probation with the condition that Gupta perform a rigorous full-time program of community service."

The offers for community service involve working with homeless and runaway youth as well as "a less orthodox but innovative proposal" of living in the backward districts of Rwanda and working with the local government on health care initiatives with particular focus on HIV/AIDS and malaria and agricultural development.

Rajat Gupta will be sentenced on October 24 for his conviction on three counts of securities fraud and one count of conspiracy.

Gupta, 63, will be sentenced on October 24 in Manhattan federal court by US District Judge Jed Rakoff for his conviction on three counts of securities fraud and one count of conspiracy. The securities fraud carries a maximum prison sentence of 20 years and the conspiracy carries a five-year jail term.

Gupta's sentencing comes exactly a year after Manhattan's top federal attorney India-born Preet Bharara filed insider trading charges against the former McKinsey head. Naftalis cited previous court verdicts and said courts have recognised that in an appropriate case, "and if used wisely, probation is sufficiently serious punishment to satisfy the statutory mandate that the sentence reflect the seriousness of the offense and provide just punishment."

Naftalis said while Gupta is prepared to undertake any community service the court considers appropriate, he offered two specific programmes that Gupta could undertake. Naftalis said Gupta could work with Covenant House, which provides emergency shelter and other services for homeless, runaway and at risk youth.

"Gupta would provide direct services to these children at Covenant House s New York site, including working as part of the intake team at the Crisis Center, and assisting participants in the transitional living program known as 'Rights of Passage' and in job training.

"In addition, he would assist Covenant House in developing a plan to implement a set of strategic initiatives for the organisation."

The second offer for community services involves Gupta living in the rural districts of Rwanda and working with government officials and humanitarian organization CARE USA to help implement the country s initiative to improve delivery of health care (with a particular focus on HIV/AIDS and malaria) and agricultural development.

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