English: Rajat Kumar Gupta, Chairman of the Board, The Global Fund to Fight AIDS, Tuberculosis and Malaria; Senior Partner Emeritus, McKinsey & Company, USA; Member of the Foundation Board of the World Economic Forum, captured during the session 'Completing the Malaria Mission' at the Annual Meeting 2009 of the World Economic Forum in Davos, Switzerland, January 31, 2009. (Photo credit: Wikipedia)
Here is what we are reading today on white-collar crime:
Rajat Gupta Told to Pay Restitution to Goldman Sachs (DealBook) - A federal judge on Monday ordered Rajat Gupta, the former Goldman Sachs director, to pay the bank more than $6.2 million to reimburse it for legal expenses connected to his insider trading case. Last May, a jury convicted Mr. Gupta, 64, of leaking boardroom secrets about Goldman to the hedge fund manager Raj Rajaratnam. The presiding judge, Jed S. Rakoff, sentenced Mr. Gupta to two years in prison. He free on bail while he is appealing the conviction.
The Challenge of Sentencing White-Collar Felons (DealBook) - Are white-collar defendants treated more favorably than other criminals when it comes to sentencing? A case involving the chief executive of a technology firm in Ohio that collapsed in 2003 after fraud allegations seems to indicate that perhaps there is such a thing as being too lenient, according to a Federal Appeals Court. The recent case involves Michael E. Peppel, the former chairman and chief executive of MCSi, who pleaded guilty to conspiracy, money laundering and filing false documents with the Securities and Exchange Commission. Federal authorities said he inflated revenue and earnings to prop up MCSi’s stock price at a time when the company was failing after years of having grown through acquisitions.
Organic Food Fraud Hits Europe (Reuters) - The northern state of Lower Saxony, a major agricultural hub, has launched probes of some 150 farms suspected of wrongly selling eggs produced by hens kept in overcrowded conditions under the organic label. Two other states are investigating a further 50 farms. "If the accusations (against the farms) are found to be true, then we are talking of fraud on a grand scale: fraud against consumers but also fraud against the many organic farmers in Germany who work honestly," German Farm Minister Ilse Aigner said in a statement on Monday. Probably a problem here in the U.S. as well.