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.