Judge rejects ex-Goldman, P&G board member's request to reverse his insider-trading conviction

Markets Associated Press

An ex-Goldman Sachs and Procter & Gamble board member has been told he can't use a court's ruling in another case to nullify his insider-trading conviction in New York.

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Federal Judge Jed Rakoff rejected Rajat Gupta's request Thursday. Gupta is serving a two-year prison term after his 2012 conviction on conspiracy and securities fraud charges. Prosecutors say the 66-year-old Westport, Connecticut, executive fed tips about Goldman to a one-time billionaire hedge fund owner who was convicted of insider-trading charges at a separate trial.

Gupta's lawyers asked the judge to throw out his conviction after a federal appeals court in December reversed two insider-trading convictions. The appeals court said the men were too far removed from secrets to be convicted.