• Gupta is scheduled to be released from prison in March
  • Raj Rajaratnam is serving an 11-year term in the same prison


Tougher new requirements for insider-trading convictions aren’t helping Rajat Gupta.

The former Goldman Sachs Group Inc. director fought his 2012 conviction all the way to the Supreme Court, and lost when the high court refused to hear the case. So, he tried again, and lost again, with an appeals court Tuesday rejecting his latest challenge. He’s scheduled to be freed from a Massachusetts prison in 2 1/2 months.

In December 2014, the appeals court said prosecutors must prove defendants knew tips came from someone who had a duty to keep them secret and got a personal benefit for leaking them. That ruling undermined more than a dozen convictions won by Manhattan U.S. Attorney Preet Bharara, and gave hope to Gupta.

Gupta, 67, asked U.S. District Judge Jed Rakoff to overturn the jury’s verdict, arguing the U.S. failed to prove he got a personal benefit for passing tips to his friend, billionaire hedge fund manager Raj Rajaratnam. Rakoff ruled in July that the appeals court ruling doesn’t help Gupta, and Tuesday’s ruling backs that finding.

A federal jury in New York found Gupta guilty of passing tips to Rajaratnam about Berkshire Hathaway Inc.’s $5 billion investment in Goldman Sachs and the bank’s financial results for two quarters in 2008.

Rajaratnam, 58, is serving an 11-year sentence in the same federal prison complex as Gupta for masterminding a multimillion-dollar insider scheme. Gupta is scheduled to be released in March, according to the Bureau of Prisons website.

Gupta’s lawyer, Gary Naftalis, didn’t immediately return a call for comment on the ruling