Rajat Gupta to serve out Insider-Trading Sentence at home

CRIMRGUPTARajat Gupta, the one time MD of McKinsey & Co who lived the glamorous life of a powerful executive, and who began a two-year jail sentence for securities after a Manhattan jury found him guilty of tipping off Raj Rajaratnam, his business associate and founder of Galleon Group New York hedge fund, to corporate secrets, has now been released from a federal correctional facility in Massachusetts, and is to serve out the rest of his sentence at home.

This entails Gupta continuing to be a federal inmate until March 13, during which period he will be confined to his apartment and required to wear an ankle bracelet that monitors his movements.

The home confinement rules specify that Gupta can go to work, visit a doctor’s office or attend religious services, and with special permission go shopping or get a haircut.
Since returning to his Manhattan apartment, Gupta has been fielding calls from former associates who say he is in good spirits, even as he has enormous financial losses to recoup.

Interestingly when Gupta was serving his sentence in the Deven facility that houses 124 inmates, Rajaratnam was almost a neighbour because he is serving an 11 year sentence at a facility that was not far away but off limits to inmates. This year Gupta will be with his wife and four daughters at his Manhattan apartment.