Articles Posted in Insider trading

Insider Trading Charges Against Goldman’s Rajat Gupta By R Tamara de Silva October 26, 2011

Yesterday Rajat K. Gupta, a Senior Partner Emeritus and Managing Director of McKinsey & Co. and Board Member of Goldman Sachs Group, Inc., was indicted on criminal charges of insider trading.[ 1] Mr. Gupta is alleged to have provided Raj Rajaratnam, the founder of one of the largest hedge funds in history, Galleon Group inside information from which Rajaratnam profited[2 ]. Mr. Gupta will likely be prosecuted by the same U.S. Attorney, Preet Bharara, who obtained a conviction and eleven year sentence (the longest sentence ever dealt on the charge of insider trading) against Raj Rajaratnam.

Mr. Gupta’s arrest comes on the heels of what has been an over four year investigation of alleged insider trading on Wall Street. The principal focus of the government’s investigation has been on whether information was passed along by analysts and consultants of companies that provide “expert network” analysis to hedge funds and mutual funds. Expert network companies arranged for meetings and calls with executives from hundreds of companies and then shared this information with traders at hedge funds and mutual funds.