Denial is a demonstration of vanity
The Rajat Gupta case and the Bill Clinton-Monica Lewinsky case bear a strong resemblance. Both defendants were powerful, men of the world, having ‘been there, done that, and seen it all’. When they were cornered into a situation that was clearly brought unto themselves, they went into what I call a ‘synthetic denial’. Both men used technical, obtuse, clinical language and terms to describe what they had done as being “incorrect, but not illegal”. Both insisted on making a public spectacle of themselves despite being so obviously in the wrong. Men like these have Himalayan-sized egos. Their false vanity deceives even themselves!
From what I read, Rajat Gutpa was offered a fine, a rap and no jail term by the SEC if he would have admitted to insider trading. But he chose not to accept and went on to defend his wrong!
Lesson: Don’t be in denial. Do not let your ego deceive you. We all make mistakes. Once discovered, correct it and redeem yourself as fast as you can!