The Joplin Globe, Joplin, MO

Business

June 15, 2012

Ex-Goldman Sachs director Gupta guilty of insider trading

NEW YORK — A jury has convicted former Goldman Sachs director Rajat Gupta in his high-profile insider-trading case in New York.

A federal jury had been weighing Gupta’s fate for two days. The jury of eight women and four men found Gupta guilty of four criminal counts in a wide government push against insider trading.

Gupta was found guilty of three counts of securities fraud and one count of conspiracy for leaking stock tips to Raj Rajaratnam, head of the Galleon Group hedge fund. He was acquitted on two counts of securities fraud.

Each fraud charge carries a sentence of up to 20 years in prison; the conspiracy charge could result in up to five years. Gupta will be sentenced on Oct. 18.

Gupta, 63, was the highest-profile defendant to face federal charges in a wide-ranging insider-trading scheme headed by Raj Rajaratnam.

Rajaratnam was found guilty last year and sentenced to 11 years in prison.

Like Rajaratnam’s trial, Gupta’s had its share of Wall Street star power. His trial featured multiple days of testimony by Goldman Sachs Chairman and Chief Executive Officer Lloyd Blankfein, as well as videotaped testimony by Ajit Jain, who is seen as a potential successor to legendary investor Warren Buffett to run Berkshire Hathaway.

Federal prosecutors in Manhattan produced emails, phone records and other documents in their bid to prove Gupta was a highly placed tipster for Rajaratnam, providing illegal inside information to the head of the Galleon Group hedge fund.

Gupta’s defense team portrayed the government’s case as circumstantial, arguing in part that the well-connected Rajaratnam could have gotten tips elsewhere on Wall Street.

Gupta chose not to testify at his own trial.

 

1
Text Only
Business
Poll

Do you think Missouri should pass legislation that would allow a prescription drug database to be kept?

A. Yes.
B. No.
     View Results
Facebook
Twitter Updates
Follow us on twitter
NDN Video
Obama Offers Condolences at Dutch Embassy Cat Fans Lap Up Feline Film Festival Raw: Lawmakers Scuffle in Ukraine's Parliament The Rock Finds His Inner 'Hercules' Michigan Plant's Goal: Flower and Die Raw: MH17 Passenger Remains in Kharkiv, Ukraine Raw: Israel Hits Gaza Targets, Destroys Mosques ShowBiz Minute: Hoffman, Oberst, Box Office WWII Vet Gets Medals, 70 Years Late Raw: Israel Bombs Multiple Targets in Gaza Veteran Creates Job During High Unemployment Raw: Cargo Craft Undocks From Space Station Widow: Jury Sent Big Tobacco a $23B Message New Orleans Plans to Recycle Cigarette Butts UN Security Council Calls for MH 17 Crash Probe Obama Bestows Medal of Honor on NH Veteran Texas Sending National Guard Troops to Border Hopkins to Pay $190M After Pelvic Exams Taped Foxx Cites Washington 'Circus Mirror' NASA Ceremony Honors Moon Walker Neil Armstrong