Rajat Gupta convicted of insider trading
After a month-long trial in Federal District Court in Manhattan, a jury took only two days to deliberate before reaching a verdict. It found Gupta guilty of leaking confidential information about Goldman to his former friend and business associate, the fallen hedge fund titan Raj Rajaratnam, on three different occasions in 2008. He was also convicted of conspiring in an insider trading scheme with Rajaratnam.
Gupta was found not guilty of two instances of tipping Rajaratnam, including an allegation that he divulged secret news about Procter & Gamble, where he also served on the board.
“Having fallen from respected insider to convicted inside trader, Gupta has now exchanged the lofty board room for the prospect of a lowly jail cell,” Preet Bharara, the United States attorney in Manhattan said in a statement.
“Almost two years ago, we said that insider trading is rampant, and today’s conviction puts that claim into stark relief,” he said.
After the verdict was read in the courtroom, Gupta, 63, remained stoic, his face expressionless. Just behind him, his wife, Anita, buried her head in her hands, leaning against a bench. His four daughters, who had squeezed into the front row of the spectators’ gallery each
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