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Former Goldman Sachs board member accused of insider trading

Details leaked to Galleon Group founder Raj Rajaratnam.

By Liam McLaughlin Published 02 March 2011
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Rajat Gupta has been charged with insider trading after it emerged that he tipped off Raj Rajaratnam in 2008 that Warren Buffett's Berkshire Hathaway was going to make a £3bn investment in Goldman Sachs.

Mr Gupta was on the board of Goldman from November 2006 till May 2010, and used insider knowledge to help Mr Rajaratnam, founder of Galleon Group, make around $18m for the hedge fund.

The US Securities and Exchange Commission (SEC) claim Mr Gupta betrayed the trust of his associates, though his lawyer denies any wrongdoing. He faces a criminal insider trading trial, as well as SEC civil charges.

Mr Gupta has also retired from his post on the board of Proctor and Gamble, which he held since 2007, in order to avoid any disruptions to their business.

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1 comment

Tom's picture

Sun, 2011-03-06 19:16 — Tom (not verified)

Now, in addition to this case, the DOJ and SEC should actually do their jobs and prosecute everyone who's responsible for the global depression.

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