Home' Trinidad and Tobago Guardian : April 19th 2014 Contents A21
Saturday, April 19, 2014 www.guardian.co.tt Guardian
Rajat Gupta, the former Gold-
man Sachs Group Inc (GS) director
convicted in a 2012 insider trading
scheme tied to the Galleon Group
LLC hedge fund, agreed to sur-
render to prison authorities on
June 17 to begin a two-year sen-
tence, a federal judge in Manhattan
Gupta, 65, lost a bid for a new
trial last month, when a three-judge
appeals panel upheld his conviction.
US District Judge Jed Rakoff said
in an order made public today that
Gupta and prosecutors consented
to the surrender date.
Gupta is the highest profile exec-
utive convicted since federal author-
ities in New York began a nation-
wide crackdown on insider trading
at hedge funds in 2007. He was
permitted to remain free on bail as
he fought his appeal.
At Gupta s sentencing, Rakoff
agreed to recommend that he serve
his sentence at the federal prison
in Otisville, New York. The Federal
Bureau of Prisons is not required
to follow the recommendation.
A jury in Manhattan federal court
convicted Gupta of passing confi-
dential tips to billionaire hedge-
fund manager Raj Rajaratnam, the
co-founder of Galleon, about Berk-
shire Hathaway Inc s US$5 billion
investment in Goldman Sachs as
well as non-public details about
the bank s financial results for the
second and fourth quarters of 2008.
In the appeal, Gupta s lawyers
argued unsuccessfully that Rakoff
made an error in the trial when he
admitted statements of a co-con-
spirator recorded in wiretapped
telephone conversations in which
Gupta wasn t a participant. Gupta
has asked the full New York federal
appeals court to reconsider the case.
The office of Manhattan US
Attorney Preet Bharara has won
convictions against 80 people and
four entities---all of them units of
SAC Capital Advisors LP---in its
investigation of fund managers,
company insiders and expert-net-
working firms. Most of the con-
victions came through guilty pleas.
No one charged in the probe has
been acquitted of insider trading.
A former BP employee, who oversaw
the cleanup of the oil spill in the Gulf
of Mexico in 2010, will pay $224,118
to settle an insider trading charge.
Keith Seilhan was accused of selling
$1m of shares in BP after receiving infor-
mation about the severity of the spill
which was not publicly available at the
BP shares fell almost 50 per cent once
the magnitude of the disaster became
known. The 47-year-old has neither
admitted nor denied the allegations.
In April 2010, the Deepwater Horizon
explosion in the Gulf of Mexico killed
11 people and resulted in 4.9 million
barrels of oil being discharged, threat-
ening marine life and hundreds of miles
The SEC alleges he "received non-
public information on the extent of the
evolving disaster, including oil flow esti-
mates and data on the volume of oil
floating on the surface of the Gulf."
Seilhan then sold his family s entire
portfolio of BP shares---totalling US$1
million---in just two days, before the
information hit the public domain.
The trades allowed Seilhan to "avoid
losses and reap unjust profits," according
to the US regulatory authority.
BP shares, which closed at US$60.48
on the day of the explosion, plummeted
as low as US$27.02 over the following
Seilhan left BP in January 2011, after
spending 20 years at the oil company.
The settlement is subject to approval
by a federal judge in the US state of
Barnes & Noble s chairman has
trimmed his stake in the bookstore to
20 per cent, by selling shares worth
US$64 million (£38 million).
Leonard Riggio, the company s
founder and largest shareholder, said
he sold 3.7 million shares on Thursday
at US$17.30 each.
Investors followed suit and the com-
pany s shares fell by 12.5 per cent to
close at US$16.26 per share on the US
Riggio said he does not plan to sell
more shares this year. In December
2013, he sold two million shares.
Even with the latest offload, Leonard
Riggio remains the largest shareholder
at Barnes & Noble.
In a statement, he said the latest sale
"is part of his long-term financial and
Barnes & Noble operates about 700
stores across 50 states in the US.
As with other brick-and-mortar
booksellers, the company has been
struggling with competition from online
rivals and e-book sellers such as Ama-
Insider trader Rajat
to prison on June 17
Former BP employee pays
US$224,000 for insider trading
Barnes & Noble chairman trims
stake to 20% by selling shares
Federal Reserve chairwoman Janet Yellen speaks during a luncheon at the
Economic Club of New York on April 16. Yellen said that the US job market
still needs help from the Fed and that the central bank must remain intent
on adjusting its policy to respond to unforeseen challenges. AP PHOTO
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