According to Reuters, the only reason the SEC put its case against the former McKinsey exec/Goldman board member on hold is because federal prosecutors intervened, which "suggests continuing interest by U.S. Department of Justice prosecutors in Gupta," who in one instance was so excited to pass inside information to Raj Rajaratnam that he rang up the Galleon founder 23 seconds after getting off with the Goldman board. [Reuters]
Rajat Gupta Appealing Suggestion Passing Material Non-Public Info To Hedge Fund Manager Friend Was "Insider Trading"
It's a dirty, dirty phrase and one Gupta says doesn't apply to him; he's waiting for others to get on board.
The Universe Has Good News And Less Good News For Rajat Gupta
The less good news is that a jury found the former McKinsey executive guilty on three counts of securities fraud and one count of conspiracy for passing material non-public information to his friend*, convicted insider trader Raj Rajaratnam. The good news: 1. Rajat could go to jail for twenty years but probably won't ("Gupta faces up to 20 years in prison on each of the fraud charges and up to five years for the conspiracy charge. But his sentence is likely to be significantly lower under federal guidelines.") 2. Sentencing is scheduled for October 18 so he's got the whole summer and then some into a Zen place about going to prison. Also! Plenty of time to do all those things he was too busy for when he was working. This is gonna be his time. Time to taste the fruits and let the juices drip down his chin. The summer of Rajat! Gupta Found Guilty Of Insider Trading [WSJ] *Friend Rajat's ass.
Prison Puts A Damper On Once Friendly Working Relationship
The Times reports that the friction between Raj Rajaratnam and Rajat Gupta around the Federal Medical Center Devens is more than a little palpable.