A member of the Goldman Sachs board from 2006-2010, Rajat Gupta, has been charged with insider trading in the US, charges his lawyer denies, as he did in May 2010 when Gupta’s name surfaced as a target in investigations into the Galleon Group. The US Securities and Exchange Commission claims Gupta leaked details to Raj Rajaratnam, a friend and founder of the Galleon Group, about Warren Buffett’s $5bn investment in Goldman in 2008, money that kept Goldman from being pulled under during the global financial crisis. He is also accused of leaking information about the financial performance of Goldman as well as US multinational P&G.
Gupta resigned from the P&G board Tuesday, once the charges were announced.
He has been something of a hero in the Indian business world, as the first CEO of McKinsey, the consulting group, who was not born American. He headed the company for 10 years. Gupta is Indian and American.
Links to other sites: BBC, Economic Times of India, Financial Times, Wall St Journal
New York, NY (GenevaLunch) – Six people involved with hedge funds have been arrested in the US by the FBI and charged with insider trading. The group includes Raj Rajaratnam, who founded the Galleon Group, and who is on a Forbes magazine list of the world’s wealthiest people, worth an estimated $1.3 billion. Rajaratnam held a plane ticket for Geneva for the coming week, prosecutors say. Galleon is estimated to have $7 billion in assets under management. It appears that the group was arrested now because Rajaratnam had been tipped off that one of them was being listened to by the FBI.
