The United States Court of Appeals for the Second Circuit upheld the verdict against Rajat Gupta, the former Managing Director of McKinsey & Company. Gupta was convicted on charges of insider trading last year, being found guilty on three counts of securities fraud and one count of conspiracy. The court sentenced Gupta to two years in jail, one year of additional supervision upon release, and a $5 million fine. Gupta had been free on $10 million bail, but the bail agreement only lasted until the appeals process was finalized .

The court order stated that Gupta’s appeal was “without merit.” The primary evidence against Gupta consists of wire-tapped phone calls between Gupta and Raj Rajaratnam. Gupta’s legal team argued that this evidence is hearsay and should not have been admissible in Gupta’s original trial. The court of appeals disagreed and also declined to hear “state of mind” testimony from Gupta’s daughter, which his attorneys believe would have shown how angry he was after Rajaratnam tricked him into providing privileged trading information .

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