Rajat Gupta fined $13.9 million for Insider Trading
Rajat Gupta fined $13.9 million for Insider Trading. The former Goldman Sachs Director Rajat Gupta has been fined a penalty of $13.9 million for one of the biggest insider trading case and has been eternally expelled from acting as an officer or director of a public company for leaking out boardroom secrets. He has been permanently barred from acting as an officer or director of a public company and from associating with any broker, dealer or investment adviser.
He is simultaneously appealing for his June, 2012, conviction in which he was given a two-year prison term and fined $5 million. The Securities and Exchange Commission (SEC) obtained $13.9 million penalty against Mr. Gupta for illegally spilling corporate secrets to his friend and former hedge fund manager Raj Rajaratnam.
The Securities and Exchange Commission earlier obtained a record $92.8 million penalty against Mr. Rajaratnam for prior insider trading charges. The SEC filed a complaint against Mr. Gupta in late 2011 for disclosing confidential information to Mr. Rajaratnam about Berkshire Hathaway Inc’s $5 billion investment in Goldman Sachs as well as non-public details about Goldman Sachs’ financial results for the second and fourth quarters of 2008. Mr. Gupta was sentenced on October 24, 2012, to a term of imprisonment of two years followed by one year of supervised release and ordered to pay a $5 million criminal fine. On December 26, 2012, the SEC obtained a final judgement ordering Mr. Rajaratnam to surrender his share of the profits gained and losses avoided as a result of the insider trading based on Mr. Gupta’s provided secrets and prejudgement interest.
Month: Current Affairs - July, 2013