Rajat Gupta Convicted of Insider Trading

Peter Lattman and Azam Ahmed
DealBook
6/15/2012

Rajat K. Gupta, the retired head of the consulting firm McKinsey & Company and a former Goldman Sachs board member, was found guilty on Friday of conspiracy and securities fraud for leaking boardroom secrets to a billionaire hedge fund manager.

He is the most prominent corporate executive convicted in the government’s sweeping investigation into insider trading.

The case, which caps a wave of successful insider trading prosecutions over the last three years, is a significant victory for the government, which has penetrated some of Wall Street’s most vaunted hedge funds and reached into America’s most prestigious corporate boardrooms…

…Mr. Gupta, a native of Kolkata, India, was orphaned as a teenager. After earning an engineering degree, he moved to the United States to attend Harvard Business School on a scholarship. He joined McKinsey in the early 1970s and in 1994 was elected global head, the first non-American-born executive to hold that post…

The complete article is at DealBook.

H/T Jammie Wearing Fool who also discloses that Gupta and Rajaratnam had close ties to the Obama White House and gave substantial contributions to Democrats. Go to the link to read more.

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