New York (HedgeCo.net) – One of Goldman Sachs’ former directors, Rajat Gupta, has been arrested on charges of insider trading as a co-conspirator in the criminal case against hedge fund manager Raj Rajaratnam.
The New York Times reports:
“Rajat K. Gupta, a former director at Goldman Sachs and Procter & Gamble, pleaded not guilty Wednesday to insider trading charges, setting the stage for a courtroom battle that will extend the government’s broad crackdown on Wall Street to the corporate boardroom.”
Bloomberg reports:
“The prosecution is built on circumstantial evidence that may be less persuasive than the wiretaps that sealed the fate of his friend Raj Rajaratnam. Prosecutors will seek to convict Gupta based on the timing of his phone calls and the Rajaratnam trades that immediately followed.”
The Economic Times says:
“Regardless of the case’s outcome, the charges punctuate a stunning fall from grace for Gupta, whose personal story reads like a caricature of a Horatio Alger tale.
Orphaned at 18, Gupta, a native of Kolkata, received an engineering degree from the elite Indian Institute of Technology. He earned a scholarship to Harvard Business School, graduating at the top of his class and securing a prized posting at McKinsey & Co.”
Gupta has been freed on $10 million bail, pending trial. He faces a sentence of over 100 years and a $25 million fine if found guilty.
Alex Akesson
Editor for HedgeCo.net
alex@hedgeco.net
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership in HedgeCo.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
