Rajat K. Gupta, a former director at the Goldman Sachs Group who was convicted on insider trading charges, has lost a last-minute attempt to stay out of prison.
A federal appellate court in New York on Friday rejected Mr. Gupta’s attempt to remain free on bail while he seeks to appeal his 2012 conviction to the United States Supreme Court. Mr. Gupta, 65, is now set to surrender to the federal Bureau of Prisons on June 17 and begin serving a two-year prison sentence.
Lawyers representing Mr. Gupta were not immediately available for comment.
Mr. Gupta, also a former managing director of the consulting firm McKinsey & Company, is the most prominent corporate official to be convicted in the federal government’s multiyear crackdown on insider trading in the hedge fund industry. A federal jury found Mr. Gupta guilty of passing inside financial information about Goldman Sachs to his friend Raj Rajaratnam, a co-founder of the Galleon Group hedge fund, who was convicted of insider trading in 2011.
Mr. Rajaratnam, who is appealing his conviction to the Supreme Court, is serving an 11-year prison sentence.
In March, a three-judge panel of the United States Court of Appeals for the Second Circuit upheld Mr. Gupta’s conviction. Mr. Gupta agreed in April to begin serving his prison sentence on June 17. But a few weeks ago, his lawyers filed papers with the appellate court seeking to permit him to remain free on bail while he sought to take his case to the Supreme Court.