[ by Melanie Gretchen ]

Rajat Gupta Gets the most favorable sentence possible - and way shorter than the sentence given to friend Raj Rajaratnam,

Mr. Gupta, the former public director for Goldman Sachs and Procter & Gamble was sentenced by federal Judge Rakoff to 2 years in prison on Wednesday for leaking boardroom secrets.  It was more than his attorney, Gary Naftalis had petitioned for (probation) and less than the 10 years sought by federal prosecutors. 

On the receiving end of the tip line, Galleon Group founder Rajaratnam was convicted in 2011 on all 14 counts of conspiracy fraud and is currently serving 11 years in prison.

Fall from Grace. Considering how far Rajat Gupta had come in his life - attaining enormous wealth and world-wide recognition. Before his conviction earlier this year, Gupta, 63, could proudly look to his many accomplishments, including the following:

• he grew up as an orphan in Kolkata, India, at least through his 18th birthday.
• he came to the United States and earned an advanced decree at Harvard Business School.
• he joined McKinsey & Company, the pre-eminent consulting firm, then proceeded to outperform all his peers over the next 10 years.
• his efforts translated into his becoming the head of McKinsey & Company.
• as Chief Executive, Gupta gained world-wide recognition, fame and wealth.
• his work at McKinsey landed him future opportunities, such as serving as top adviser to the charitable foundations created by Bill Gates and Bill Clinton, and to be named to 2 prestigious boards - for Goldman and P&G.
• he supported, and participated in humanitarian efforts - playing a leading role in organizations that fought diseases in poverty-stricken nations.

Gupta's Legacy and Court-Ordered Sanctions.  On the day he was found guilty of committing insider trading, Rajat Gupta became the most prominent figure to be convicted.  Now, with his sentencing completed, Gupta is the most significant individual to be sentenced to prison as part of the government's long-running crackdown on insider trading.  In addition to time in prison, Gupta was ordered to pay a $5 million fine.

Victory for Preet Bharara.  While the U.S. attorney in Manhattan could not sway the judge to hand down a 10-year sentence, Preet took great pride in his victory - which he expressed in the following statement:

"His conduct has forever tarnished a once-sterling reputation that took years to cultivate.  We hope that others who might consider breaking the securities laws will take heed from this sad occasion and choose not to follow in Mr. Gupta's footsteps."

For further details, go to [Dealbook, 10/24/12] and [Bloomberg, 5/11/11].