• 01 Mar 2011 at 11:35 AM

Former Goldman Sachs Board Member Accused Of Insider Trading

By Bess Levin

Rajat K. Gupta may be in some legal trouble on account of being “a friend and business associate of Raj Rajaratnam.”

The Securities and Exchange Commission today announced insider trading charges against a Westport, Conn.-based business consultant who has served on the boards of directors at Goldman Sachs and Procter & Gamble for illegally tipping Galleon Management founder and hedge fund manager Raj Rajaratnam with inside information about the quarterly earnings at both firms as well as an impending $5 billion investment by Berkshire Hathaway in Goldman.

The SEC’s Division of Enforcement alleges that Rajat K. Gupta, a friend and business associate of Rajaratnam, provided him with confidential information learned during board calls and in other aspects of his duties on the Goldman and P&G boards. Rajaratnam used the inside information to trade on behalf of some of Galleon’s hedge funds, or shared the information with others at his firm who then traded on it ahead of public announcements by the firms. The insider trading by Rajaratnam and others generated more than $18 million in illicit profits and loss avoidance. Gupta was at the time a direct or indirect investor in at least some of these Galleon hedge funds, and had other potentially lucrative business interests with Rajaratnam.

Board Member of Goldman Sachs and Procter & Gamble Charged in Insider Trading Scheme [SEC]

Earlier: Raj and Rajat’s Fancy South Asia Hedge Fund

Goldman Director In Galleon Probe

Comments (19)

  1. 1
    Posted by Niggapleeeez | March 1, 2011 at 4:59 PM

    nigga pleeeez

  2. 2
    Posted by Guest | March 1, 2011 at 5:07 PM

    You’re only supposed to “tip” the hookers

    - Charlie

  3. 3
    Posted by GSprinciple | March 1, 2011 at 5:10 PM

    #12 “We regularly receive confidential information as part of our normal client relationships.
    To breach a confidence or to use confidential information improperly or carelessly would be unthinkable.”

  4. 4
    Posted by Just_saying | March 1, 2011 at 5:36 PM

    He looks like a Mexican.

  5. 5
    Posted by derp | March 1, 2011 at 5:37 PM

    Did he pee his pants right before this photo was taken?

  6. 6
    Posted by Guest | March 1, 2011 at 5:38 PM

    Indian people ruin everything.

  7. 7
    Posted by Back office guy with no bonus | March 1, 2011 at 5:40 PM

    If you’re not getting chased by the sec/fbi/cia etc, you’re only back office material.

  8. 8
    Posted by Anonymous | March 1, 2011 at 5:59 PM

    I know, right??

    -The British Empire

  9. 9
    Posted by Spanishmoon | March 1, 2011 at 6:02 PM

    Being investigated = New Killing It.

    How else can you show you’re a Playa

  10. 10
    Posted by AmericanBandersnatch | March 1, 2011 at 6:07 PM

    You are right Sir – they give me such a headache!
    - Gen George A Custer

  11. 11
    Posted by PasteSpecialFormats | March 1, 2011 at 6:14 PM

    Picking up ladies by showing them my ankle monitor = NKI

  12. 12
    Posted by AmericanBandersnatch | March 1, 2011 at 6:15 PM

    By improperly we mean not profiting adequately and by carelessy we mean getting caught. Rajat violated both principles and for that he is the brown sheep of our family
    - LVP

  13. 13
    Posted by BreeOlson Qaddafi | March 1, 2011 at 6:31 PM

    Oh God, its back! What in all that is holy on this earth is that ungodly pressure on my sphincter?

  14. 14
    Posted by Anonymous | March 1, 2011 at 6:38 PM

    Damn I shouldn’t of had this guy over to my house for rattlesnake soup

    Vikram Pandit

  15. 15
    Posted by Anonymous | March 1, 2011 at 6:46 PM

    During my 15th interview at 80 Broad, I was asked what would by my stance on insider trading. “Well, one shouldn’t get caught”, I replied. “Other than that, no concerns”. They nodded in unisono – barely noticeable, but still – , when a guy who sat a little further away raised his left eyebrow, just a tad. “Would this notion apply to all circumstances?”, he asked slyly.

    I immediately grasped what he was up to. “Of course not if the firm is at the wrong side of the equation”, I responded.

    They paused and looked at each other for a moment. Then someone asked: “Can you come back tomorrow at 9 a.m.?”

    “No problem”, I replied.

  16. 16
    Posted by lol | March 1, 2011 at 7:41 PM

    Old news isn’t it? I thought they charged him last spring or were they just investigating?

  17. 17
    Posted by Seaman Bodine | March 1, 2011 at 7:44 PM

    go get your shine box rajat

  18. 18
    Posted by Miles Davis | March 2, 2011 at 4:26 AM

    It was clear to me all the cool kids are doing this.

  19. 19
    Posted by Guest | March 2, 2011 at 7:56 AM

    So much for tokens

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