The New York Magistrate Court today released the 62-year old Indian American businessman Rajat Gupta on a US $ 10 million bond after he had pleaded not guilty on charges of securities fraud.
Mr Gupta was arrested two days ago after his surrender to the FBI following indictment by a court for his involvement in a security fraud. Gupta is facing charges that he had passed insider information to his billionaire-friend Raj Rajaratnam while he was director at Goldman Sachs and Procter & Gamble.
Mr Gupta will face a trial before US District Judge Jed Rakoff in the US District Court, Southern District of New York on one count of conspiracy to commit securities fraud and five counts of securities fraud. Mr Gupta has been ordered to surrender his passport and limit his travel to the US only.
If the charges are proved, Mr Gupta will face a maximum penalty of five years in prison on the conspiracy charge and 20 years in prison on each of the securities fraud charges.
