New York (HedgeCo.net) – One of Goldman Sachs’ former directors, Rajat Gupta, is turning himself over to the FBI today, the Guardian reports.
Gupta faces insider trading charges as an unindicted co-conspirator in the criminal case against hedge fund manager Raj Rajaratnam. So far he denies any wrongdoing.
“Any allegation that Rajat Gupta engaged in any unlawful conduct is totally baseless.” Gupta’s attorney, Gary Naftalis, said, “The facts demonstrate that Mr Gupta is an innocent man and that he has always acted with honesty and integrity. He did not trade in any securities, did not tip Mr Rajaratnam so he could trade, and did not share in any profits as part of any quid pro quo.”
The SEC originally brought civil fraud charges against Gupta in March for allegedly tipping Rajaratnam off to insider information in the SEC vs. Galleon case.
Gupta is alleged to have told Rajaratnam of a $5 billion investment by Warren Buffett in Goldman Sachs before the information became public.
Rajaratnam was taken into custody in New York on Oct. 16, 2009 in what is being called the USA’s largest hedge fund insider-trading scheme. He is being accused of insider trading and securities fraud, generating as much as $49 million in profit. The majority of the stocks involved are in technology, including, IBM, Intel, Akamai Technologies Inc, Polycom Inc, Hilton Hotels Corp, Google Inc, Sun Microsystems Inc SUNW.TI, Clearwire Corp, Advanced Micro Devices, ATI Technologies Inc and eBay Inc.
Alex Akesson
Editor for HedgeCo.net
alex@hedgeco.net
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