The former McKinsey chief is currently serving his prison term in a federal prison in Ayer, Massachusetts.
In his appeals,Gupta cited a recent landmark decision by the appeals court that had said that for an insider-trading conviction prosecutors must show that a defendant received a personal benefit for passing illegal tips. Gupta sought to vacate his sentence and the judgment against him on the basis of an argument that the trial court’s instruction to the jury concerning the “personal benefit” element of an insider trading violation was “erroneous” and there was insufficient evidence of such benefit. Rakoff had also denied Gupta’s bid to seek a “certificate of appealability” that would have given the IIT and Harvard alumnus another legal recourse to challenge his conviction. Rakoff, who had presided over Gupta’s trial and sentenced him to the two years’ imprisonment, had said that even though Gupta is a “man of many laudable qualities,” the “hard fact remains” that he committed a serious crime.