Ex-Goldman Board Member Faces Insider Trading Rap

Submitted by Chris Gaetano on Thu, 10/27/2011 - 11:37

Rajat Gupta, a former board member of Goldman Sachs and Procter & Gamble, surrendered to the FBI Wednesday on suspicion of what could be the largest insider trading case in history, according to Bloomberg. Gupta is accused of sharing confidential information about the companies on which he was a board member with hedge fund founder Raj Rajaratnam, who would then use this information to buy and sell stocks before any public announcements were made. Rajaratnam has already been sentenced to an 11-year prison term for insider trading and while Gupta wasn't his only alleged source in that case, he was by far the most prominent, according to NPR.

Gupta’s lawyers, in a written statement, said that the charges against his client were “totally baseless” and that “there were legitimate reasons for any communications between Mr. Gupta and Mr. Rajaratnam,” according to Forbes. Gupta himself has pleaded “not guilty,” according to the Associated Press.

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Submitted by Congress Accused of Systemic Insider Trading | NYSSCPA.ORG (not verified) on Tue, 11/15/2011 - 11:29.

[...] information to get an unfair advantage in the market, is the type of serious business that leads to criminal investigations and possible prosecution. If you’re a member of Congress, however, insider trading is [...]

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