Photo: Getty Images
U.S. prosecutors announced a superseding indictment Tuesday in the insider trading case of Rajat Gupta. [via @CNBC]That basically means it’s a rewritten indictment.
Gupta, the former McKinsey & Co. executive and Goldman Sachs board member, has been charged for illegally tipping Raj Rajaratnam while he was serving on the boards of Goldman Sachs and Procter & Gamble.
Disgraced Galleon chief Rajaratnam is currently serving 11 years in federal prison for orchestrating one of the largest insider trading circles in history.
After comparing the new indictment in the Gupta case with the old one we have noticed a few changes.
- The alleged insider trading scheme dates back about a year earlier than previously thought. Prosecutors allege that Gupta and Rajaratnam ‘s scheme began around 2007 instead of 2008, according to the new indictment.
- The superseding indictment also highlights two additional allegedly illicit trades in Goldman Sachs stock. Those trades allegedly took place in March and September 2007 before earnings were publicly announced.
- Furthermore, the superseding indictment claims that Gupta benefitted from his relationship with Rajaratnam. For instance, Gupta allegedly had significant equity in Voyager Capital Partners, which Rajaratnam managed a significant portion and invested certain assets in Galleon. Gupta was also appointed chairman of Galleon International and granted an ownership stake by Rajaratnam.