Ex-Goldman Exec Charged With Fraud

Rajat Gupta accused of leaking info to Galleon director
By Rob Quinn,  Newser Staff
Posted Oct 26, 2011 4:51 AM CDT
Updated Oct 26, 2011 10:26 AM CDT
Insider Trading Probe Nabs Ex-Goldman Sachs Director Rajat Gupta
Gupta, 62, is accused of sharing boardroom secrets with associates.   (AP Photo/Keystone/Alessandro Della Bella, file)

Former Goldman Sachs director Rajat Gupta surrendered to federal authorities today to face charges related to insider trading, the AP reports. Gupta appeared in Manhattan federal court and was charged with one count of conspiracy to commit securities fraud and five counts of securities fraud. The longtime McKinsey & Company chief is accused of providing insider information to Galleon Group founder Raj Rajaratnam, according to the Wall Street Journal. Rajaratnam has already received his own 11-year sentence for insider trading.

Prosecutors say that within minutes of a board meeting, Gupta provided Galleon's founder with information on Warren Buffett's $5 billion investment in Goldman Sachs at the height of the financial crisis. Gupta's lawyer says his client—one of the best-known Indian Americans in the business world—"acted with honesty and integrity" and did not profit from his dealings with Galleon. (Read more Goldman Sachs stories.)

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