Rajat Gupta, the former Goldman Sachs Group Inc. (GS) director and McKinsey & Co. managing director who rose to the pinnacle of Wall Street, was sentenced to two years in prison for passing inside tips to his business partner. Gupta, who ran McKinsey from 1994 to 2003, was sentenced yesterday by U.S. District Judge Jed Rakoff in Manhattan for leaking stock tips to Galleon Group LLC co-founder Raj Rajaratnam. Gupta, 63, was convicted by a jury in June of one count of conspiracy and three counts of securities fraud. More on Bloomberg Businessweek [...]
A former Intel Corp. executive, whose trial testimony helped convict hedge fund titan Raj Rajaratnam, avoided prison time on Monday for his role in the biggest insider-trading prosecution of a generation. Rajiv Goel is the third former friend and business associate, who testified against Mr. Rajaratnam at his 2011 Manhattan federal court trial, to be handed a sentence of probation. Mr. Goel is among scores of fund managers, traders, lawyers, executives and consultants caught in a U.S. government crackdown on Wall Street insider trading in the past four years. Read The Globe and Mail report [...]
– Bernard Madoff was sentenced to a 150-year prison term after revealing that he used his investment advisory business to cheat thousands of investors of roughly $20 billion in a multi-decade fraud, using the money from new investors to pay returns to existing clients. More on Bloomberg Businessweek here. [...]
Federal prosecutors in California are investigating whether a Goldman Sachs executive leaked confidential information about two publicly traded companies to Raj Rajaratnam, the convicted hedge fund manager. The previously undisclosed criminal inquiry emerged during a pretrial hearing on Thursday in the case of Rajat K. Gupta, the former Goldman director. Mr. Gupta is accused of telling Mr. Rajaratnam about secret boardroom discussions at Goldman and Procter & Gamble, where he also served on the board. More in the New York Times [...]
Federal prosecutors and lawyers for Raj Rajaratnam filed their second round of sentencing briefs on Friday, setting the stage for later this month when a federal judge will announce the former hedge fund manager’s prison term. Read New York Times report [...]
Should investors in the Galleon Group, which was run by the convicted insider trading criminal mastermind Raj Rajaratnam, suffer for the sins of the fund manager? That’s a provocative question raised by a New York Times columnist, who intriguingly compares Galleon investors to investors in Bernard Madoff’s epic fraud. Read more on FierceFinance [...]