Rajat Gupta - former chief of global consulting business McKinsey & Co |
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Rajat Gupta fined $13.9 mn for insider trading
Washington, July 18. 2013; Former Goldman Sachs Indian-American board member Rajat Gupta, who was found guilty of tipping corporate secrets to jailed billionaire hedge-fund manager Raj Rajaratnam, has been fined $13.9 million in a related case.
Gupta, 64, has also been permanently barred from serving as an officer or director of a public company and from associating with any broker, dealer, or investment adviser, the Securities and Exchange Commission announced here Wednesday citing an order of a federal judge in New York.
The top US regulator said it had previously obtained a record $92.8 million penalty against Galleon Group co-founder Rajaratnam, 56, for prior insider trading charges.
Gupta was found guilty on June 15, 2012, of divulging confidential information to Rajaratnam about Berkshire Hathaway's $5 billion investment in Goldman Sachs as well as nonpublic details about the bank's financial results for the second and fourth quarters of 2008.
In October, Gupta was sentenced to two years in prison and ordered to pay a $5 million criminal fine. He is free pending his appeal of the decision.
"The sanctions imposed today send a clear message to board members who are entrusted with protecting the confidences of the companies they serve," said George S. Canellos, Co-Director of the SEC's Division of Enforcement.
"If you abuse your position by sharing confidential company information with friends and business associates in exchange for private gain, you will be prosecuted to the fullest extent by the SEC."
The SEC said on Dec 26, 2012, it obtained a final judgment ordering Rajaratnam to disgorge his share of the profits gained and losses avoided as a result of the insider trading based on Gupta's tips, plus prejudgment interest.
Rajaratnam in June lost an appeal of his 2011 conviction for conspiracy and securities fraud. He was ordered to pay a record $92.8 million penalty in the SEC matter, and to forfeit more than $53.8 million and pay a $10 million fine in the criminal case.
He is serving an 11-year prison sentence at the Federal Medical Centre Devens in Ayer, Massachusetts. .....IANS/NRIpress.com
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Rajat Gupta was a senior partner of McKinsey & Company. He joined the firm's New York office in 1973, assumed leadership of its Scandinavian offices in 1981, and joined the Chicago office in 1987. He assumed the role of office manager there in 1989, was elected managing director of the firm in 1994 and served until 2003. He stepped down as a partner of the firm in 2007.
McKinsey was founded by James O. McKinsey in 1926. More than 75 years later, the firm has grown into a global partnership serving three of the world's five largest companies and two-thirds of the Fortune 1000.McKinsey already had an established practice in budgeting and finance when he decided to test his theory that so-called "management engineers" could go beyond rescuing sick companies to helping healthy companies thrive and grow |
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