What do Rajat Gupta and Sergey Aleynikov have in common? Not much, on the surface. One is the patrician former McKinsey chief and Goldman Sachs director, the other a scruffy young computer programmer. But as you probably know, Gupta and Aleynikov both got on the wrong side of Goldman Sachs. Gupta was convicted this summer of leaking inside information about the bank to Galleon Group founder Raj Rajaratnam. Aleynikov, a former Goldman computer programmer, was convicted in 2010 on federal charges of stealing the bank’s high-frequency trading code when he defected to a rival start-up but was set free last April by the 2nd Circuit Court of Appeals. (He has since been charged by the Manhattan district attorney for state-law crimes.)
Gupta and Aleynikov have also both learned the consequence of crossing Goldman Sachs: The bank will not willingly pay their legal fees. Goldman moved in October for restitution of some $7 million it laid out for Gupta’s defense in his criminal case in federal court in Manhattan.
http://newsandinsight.thomsonreuters.com/Legal/News/2012/12_-_December/What_is_Goldman_Sachs_s_standard_for_indemnifying_legal_fees_/
