Rajat Gupta to Face Criminal Charges for Insider Trading

October 27 00:00 2011

New York, October 26 (RainbowNewsLine.com) – After Raj Rajaratnam was charged and convicted for insider-trading, the focus is now on Rajat Gupta, ex-director of Goldman Sachs who has been named by prosecutors as an unindicted co-conspirator in the criminal case against Rajaratnam earlier this year.

Federal prosecutors say he fed insider information to Galleon Group hedge fund founder Rajaratnam.
The charges are expected Wednesday when Gupta will likely surrender to the FBI. His attorney, Gary Naftalis did not comment on possible criminal charges but he issued a statement echoing his previous comments that Gupta committed no wrongdoing.

Gary said, “Any allegation that Rajat Gupta engaged in any unlawful conduct is totally baseless. 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.”

Goldman Chief Executive Officer Lloyd Blankfein testified at Rajaratnam’s trial in Manhattan federal court that Gupta violated confidentiality at Wall Street’s most powerful bank by leaking boardroom secrets. The U.S. Securities and Exchange Commission said Gupta passed illegal tips to Rajaratnam about Goldman, including a possible multibillion dollar investment from Warren Buffett, as well as tips about Procter & Gamble Co, where Gupta was also a director.