Gupta Guilty of trafficking Information

 

Rajat Gupta, former Goldman Sachs executive, was found guilty of insider trading in the indictment of the highest-ranking executive in the government offensive against bad practices on Wall Street.

The jury in New York, after just over a day of deliberations, found him guilty of four out of six criminal charges. The trial began on the 21st of May and Gupta did not testify in his own defense.

Gupta, who was also head of the consulting firm McKinsey & Co. and director of Procter & Gamble, was charged in October. The case is part of a crackdown on insider trading in the last two and a half, in which there have been 66 indictments and 60 convictions.

None of the accused was found not guilty of the charges so far, although several cases are still pending.

In the operation were used as research tools and informants recordings, which are associated with other types of crimes.

The recordings were used first in the case of Raj Rajaratnam, a friend of Gupta and fund manager Galleon, who received 11 years in prison last year for winning $ 64 million in a scheme of insider trading.

Gupta was accused of giving information to Rajaratnam on Goldman Sachs and Procter & Gamble. Each of the charges for which he was found guilty reaches a maximum sentence of 20 years each. He was also convicted of one count of conspiracy, which carries a maximum of 5 years in prison.

Prosecutors argue that in the fall of 2008, Gupta called Rajaratnam 16 seconds after the board of Goldman approved an investment of 5.000 billion of Berkshire Hathaway, Warren Buffet’s signature.

Minutes later, Galleon bought 27 million shares of Goldman. In a conversation the next morning, which was secretly recorded by the FBI, Rajaratnam told an associate that he received a phone call before the stock saying “something good will happen to Goldman.”

When Goldman moved with the news of Buffett’s investment, Galleon sold them and made a profit of $ 840.000.

Leave a Reply

Your email address will not be published. Required fields are marked *

Post Navigation