Jurors in a
Gupta, 63, was found guilty of passing on
nonpublic information from Goldman Sachs board meetings to now-jailed hedge fund
manager Raj Rajaratnam, but the jury didn't convict him on two charges,
including an allegation that Gupta had also leaked information about discussions
of the Procter & Gamble board, on which he also served.
The conviction represents a tragic fall for
Gupta, a Harvard graduate and corporate titan who was a former chief of McKinsey
& Co., a top corporate consulting firm.
Sentencing in the case is scheduled for Oct.
18. Gupta faces up to 20 years in prison, according to the Wall Street Journal,
which says his sentence, will likely be lower. Rajaratnam was sentenced in
October to 11 years in prison for insider trading. Huffington Post
Two of the securities fraud counts Gupta was
found guilty of related to a tip about a Warren Buffet investment that he passed
to Galleon Group founder Raj Rajaratnam before it was announced to the public on
Sept. 23, 2008. nydailynews.com Gupta called Rajaratnam a minute after taking
part in a conference call with his Goldman Sachs colleagues at which the bank's
boss, Lloyd Blankfein, announced billionaire investor Warren Buffett planned to
invest $5bn in it. The Guardian Galleon, Rajaratnam's hedge fund, bought $43m
of Goldman stock in the final three minutes of the trading day and made nearly
$1m on the trade. Blankfein was called to testify in the case. The Guardian The case brought by Gupta's lawyers had objected to the use of
information gathered in wiretaps, but district judge Jed Rakoff ruled that
prosecutors could play three tapes for jurors. wrnews.org So far 66 cases have been brought against
people involved in the insider dealing associated with Galleon, once a $7bn
hedge fund. Gupta is the 62nd person to be convicted or to have pleaded guilty
out of 68 people charged since 2009. So far no-one charged has been found not guilty. wrnews.org
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