Rajat Gupta should pay $13.9 mn penalty and banned for life, says US SEC

Mar 22 2014, 20:16 IST
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Rajat Gupta has also been convicted in a parallel criminal insider trading case brought against him by federal prosecutor Preet Bharara. Rajat Gupta has also been convicted in a parallel criminal insider trading case brought against him by federal prosecutor Preet Bharara.
SummaryFormer Goldman Sachs director Rajat Gupta has been granted time till April 7 to file his reply to SEC brief.

of the trades is "inconsequential" since his misconduct "created substantial losses or the risk of substantial losses to other persons," even if he did not pocket any direct gains.

Further, the fact that Gupta did not pocket money from the trades is "irrelevant" because a civil penalty is not limited to the tipper’s direct gains, but is calculated based on any profit gained or loss avoided by tippees that occur "as a result of" the "communication" of inside information by non-trading tippers, SEC added.

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