Gupta Case Shows Sentencing Guidelines Losing Favor In NY

Law360, New York (October 24, 2012, 8:19 PM EDT) -- In handing down a two-year prison term Wednesday to Rajat Gupta, U.S. District Judge Jed Rakoff lambasted federal sentencing guidelines that turn insider trading cases into a numbers game — an increasingly common refrain in New York federal courts, attorneys say.

The sentencing of Gupta, a former Goldman Sachs Group Inc. director, marked the most highly anticipated finale to an insider trading case since Raj Rajaratnam — the alleged beneficiary of the tips — received an 11-year prison term in October 2011.

Gupta’s attorneys had suggested...
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