September 17, 2021

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

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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

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