Ex-director of Goldman charged by SEC for inside trading
Rajat Gupta former director of Goldman Sachs Group Inc and Procter & Gamble Co has been charged by U.S. Securities and Exchange Commission(SEC) for illegally disclosing information to Raj Rajaratnam founder of Galleon Group, a New York-based hedge fund management firm.
Gupta allegedly passed inside information to hedge fund billionaire Raj Rajaratnam about the quarterly earnings of Goldman Sachs and Procter & Gamble. The SEC also said that Gupta tipped Rajaratnam about an impending $5 billion investment by Berkshire Hathaway in Goldman Sachs in 2008.
The insider trading was said to have generated $18 million in profit. Rajaratnam’s trial is set to begin on March 8, 2011.