Skip to main content
November 27, 2021
Updated:
Original:

Goldman Sachs Director Who Waited But 23 Second Before Passing On Material Non-Public Information About Bank To Hedge Fund Manager Not Allowed To Be A Director Anymore

Author:

Which seems fair?

Rajat Gupta, the former Goldman Sachs Group Inc. director who was convicted of passing confidential tips to Raj Rajaratnam, was ordered to pay $13.9 million in a related U.S. regulatory lawsuit. Gupta was also permanently barred from acting as an officer or director of a public company and from associating with any broker or investment adviser, the Securities and Exchange Commission said, citing an order filed today at federal court in Manhattan. Gupta was found guilty on June 15, 2012, of divulging confidential information to the Galleon Group founder about Berkshire Hathaway Inc.’s $5 billion investment in Goldman Sachs as well as nonpublic details about the bank’s financial results for the second and fourth quarters of 2008. Gupta was sentenced to two years in prison and is free pending his appeal of the decision.

Gupta Ordered to Pay $13.9 Million in SEC Insider-Trading Case [Bloomberg]
Earlier: Goldman Sachs Board Member Couldn’t Wait A Single Second To Pass Insider Information To Raj Rajaratnam

Related

News

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.

News

Goldman Sachs Board Member Couldn't Wait A Single Second To Pass Insider Information To Raj Rajaratnam

News

Raj Rajaratnam's 23-Second Man Reporting To Prison Next Month

News

Rajat Gupta Defense Team: You Think Our Client Would Pass Inside Information To A Guy Who Didn't Even Have The Decency To Invite Him To His Birthday Party?

What motivates people to share material non-public information with a person they know will use it for profit? For some, it's simply about greed. For others, it's about the thrill. For yet others, it's about pillow talk. For Rajat Gupta, the McKinsey director currently on trial for allegedly passing inside information to Raj Rajaratnam, it's about friendship, according to prosecutors who are trying to make the case that Raj and Rajat were the best of buds and that's what buds do. They they back each other up when they drunkenly hit on the girlfriend of the wrong guy at the bar, they stand up as best men at each others' weddings, they pick up the phone and say "Buy GS" when they know for a fact Warren Buffett is about to do so, too. And although attorneys representing Gupta don't deny the two were thick as thieves, they argue that while perhaps back in the day Rajat would have provided useful information to Raj, there is no way he would have done so after Big R twice violated the bonds of friendship. In the first instance, there was this: Defense attorneys have argued that Messrs. Gupta and Rajaratnam had a falling out in fall 2008 after Mr. Gupta lost his entire $10 million investment in a fund managed by Mr. Rajaratnam and therefore wouldn't have passed along inside information...The precise timing of their relationship's deterioration could be crucial in proving Mr. Gupta's guilt or raising doubts in the minds of jurors about whether he conspired to commit securities fraud...Defense attorneys have said Mr. Gupta was furious at Mr. Rajaratnam in the fall of 2008, when Mr. Gupta's $10 million investment in a fund called Voyager Capital Partners Ltd. evaporated. According to Mr. Kumar's testimony, Mr. Gupta felt Mr. Rajaratnam's negligence had allowed Voyager to collapse. And then this happened:

News

Taped Conversations Of Rajat Gupta Sharing Information About Goldman Sachs With Raj Rajaratnam Not So Bad, Say Legal Professionals

News

Raj Rajaratnam Did Not Appreciate Having An Employee Question His Goldman Inside Information

News

Jon Horvath's New Year's Resolution For 2008 Was To Feed His Boss More Material Non-Public Information

News

SAC Capital Alum Will Do 9 Years For Trading On Material Non-Public Information