Rajat fined $13.9 mn for insider trading
Washington (IANS): Former Goldman Sachs Indian-American board member Rajat Gupta, who was found guilty of tipping corporate secrets to jailed...
Washington (IANS): Former Goldman Sachs Indian-American board member Rajat Gupta, who was found guilty of tipping corporate secrets to jailed billionaire hedge-fund manager Raj Rajaratnam, has been fined $13.9 million in a related case. Gupta, 64, has also been permanently barred from serving as an officer or director of a public company and from associating with any broker, dealer, or investment adviser, the Securities and Exchange Commission announced here Wednesday citing an order of a federal judge in New York. The top US regulator said it had previously obtained a record $92.8 million penalty against Galleon Group co-founder Rajaratnam, 56, for prior insider trading charges. Gupta was found guilty on June 15, 2012, of divulging confidential information to Rajaratnam about Berkshire Hathaway's $5 billion investment in Goldman Sachs as well as nonpublic details about the bank's financial results for the second and fourth quarters of 2008. In October, Gupta was sentenced to two years in prison and ordered to pay a $5 million criminal fine. He is free pending his appeal of the decision. "The sanctions imposed today send a clear message to board members who are entrusted with protecting the confidences of the companies they serve," said George S. Canellos, Co-Director of the SEC's Division of Enforcement. "If you abuse your position by sharing confidential company information with friends and business associates in exchange for private gain, you will be prosecuted to the fullest extent by the SEC." The SEC said on Dec 26, 2012, it obtained a final judgment ordering Rajaratnam to disgorge his share of the profits gained and losses avoided as a result of the insider trading based on Gupta's tips, plus prejudgment interest.