News Column

Insider Trading Case: Billionaire Turns Himself in to FBI

Oct. 26, 2011
Rajat Gupta

Billionaire executive Rajat Gupta turned himself into the FBI Wednesday in connection with the Galleon Group insider trading case, The New York Times reports.

Gupta is a former director at Goldman Sachs and Proctor & Gamble, who is charged with feeding information to Galleon Group founder Raj Rajaratnam, who was sentenced this month for profiting from confidential corporate information.

The Securities and Exchange Commission filed administrative charges against Gupta in March, saying he passed on information about both companies.

At Rajaratnam's trial, prosecutors played tapes of conversations he had with employees discussing information he had received from someone on the Goldman board.

Gupta, a native of India, has been an adviser to the Bill & Melinda Gates Foundation and the United Nations. A graduate of Harvard University, he has also served on the board of American Airlines' parent company.

Among the specific charges, the SEC has claimed Gupta passed on information to Rajaratnam concerning billionaire investor Warren Buffet's $5 billion investment in Goldman Sachs.

Gupta's attorney Gary Naftalis said in a statement that his client, who is also well known as a philanthropist, "is an innocent man."

"He acted with honesty and integrity," Naftalis said.

Source: Copyright United Press International 2011

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