On Rajat Gutpa, and the Hubris of Money, Power, and Success

Rajat Gutpa, the embattled, and indicted, former Chairman of McKinsey Inc., is now threatening to testify and take the witness stand in his own defense. You may remember that Gupta is charged with providing inside information to the now convicted felon, and former Galleon Hedge Fund chief, Raj Rajarathnam. 

The Prosecution in US v. Rajat Gupta has wire tap recordings of phone calls between Gupta and Rajarathnam, and the tapes were allowed into evidence despite the Gupta legal team's vigorous attempts to block them.

Gupta tipped off Rajarathnam of impending positive news (Warren Buffet's decision to invest $5 billion in GS, to SAVE Goldman from suffering the same fate as Lehman Brothers and Bear Stearns; and you can stop groaning Lloyd, after all, you did take the money, for whatever it was worth!) from Goldman Sachs, a few minutes prior to market close, and a couple of minutes after a Goldman Board meeting. Gupta was on Goldman's Board of Directors. The same wire tap call also helped to convict Rajarathnam.

This is USA. Anyone charged with a crime is entitled to a swift jury trial. Juries take their civic duty conscientiously. And, every defendant is protected by the 5th amendment to the US constitution - not even the US government can force a defendant to testify, if the defendant does not want to, under any circumstance. Protection against Self incrimination is a constitutional right. The accusers have the burden of proof.

Leftover hubris of the guilty (one can tell yours truly would not be a good juror), but highly successful, often makes them believe in their own invincibility, during battles for personal and professional survival. Bernie Ebbers (WorldComm & MCI), Jeffery Skilling (Enron), and Dennis Kozlowski (Tyco), are but a few in recent memory, who took a chance on their ability to beguile the jury. All three are serving long term sentences for their crimes.

Dear Rajat Gupta, the court room is not your private offices at McKinsey Inc., where you were heard, and obeyed,  without any questions or doubts. No, the information you relayed to your Wall Street pals, that you now claim was already in "Public Domain" was actually NOT.  Nice try though.  Your attorneys are obliged to fight hard on your behalf.  That is their duty to you, the client.  Preet Bharra, and Co. will fight back equally hard.  That Sir, is their duty to the Nation, and to We the People.  They will surgically disembowel your claims of innocence. 

Your bravado will fail to charm the jurors, and you run the risk of getting the maximum sentence for each count you are likely to be convicted for. Stay away from taking the stand, and cling tightly to the modicum of your dignity that may still be intact. 

You need to go to the Big House, either way.  Anil Kumar, your one time underling and friend, is eagerly awaiting your arrival.