The Harvard-educated executive was convicted in his 2012 trial of passing confidential boardroom information to his one-time friend and business associate Raj Rajaratnam. Apart from the two-year prison term, he was fined $5 million, and the Securities and Exchange Commission also slapped a $13.9 million penalty against him.
Gupta started out his prison term in 2014 at FMC DEVENS, an administrative security federal medical center with an adjacent minimum security satellite camp in Ayer, Mass. Rajaratnam is serving an 11-year sentence for insider trading in the main prison adjacent to where Gupta was assigned.
Ever since his conviction in June 2012, Gupta filed several appeals, including to the U.S. Supreme Court, to overturn his conviction and prison term, but the courts rejected his arguments and affirmed his sentence. However, it was only early last month, just weeks before his prison term was to end, that he had some legal respite when the U.S. Second Circuit Court of Appeals agreed to rehear an appeal to throw out his insider-trading conviction. Gupta completed the last two months of his prison term at his home in Manhattan, after being released on Jan. 5 from the Devens correctional facility. Even though he was not in the prison center, he remained a federal inmate until his release on March 11. He was confined to his Westport, Conn., home and was required to wear an ankle bracelet that monitored his movements. According to AP, Gupta’s lawyers said in their latest appeal that his 2012 conviction on conspiracy and securities fraud charges should be tossed because he was innocent and the jury was improperly instructed.
His attorney Gary Naftalis says he is pleased with the court's ruling and believes there are meritorious issues to present on appeal.