Rajat Gupta just resigned from the board of ISB, the business school he co-founded in India.
Obviously this has to do with the publicity disaster that ISB is dealing with right now.
Co-founded by Gupta and Anil Kumar, both of whom recently became ensnared in the government’s prosecution of Raj Rajaratnam for insider trading, ISB has gotten a fair number of mentions in the insider trading trial.
During the trial, which is ongoing, the business school has repeatedly been used as evidence of Kumar’s and Gupta’s close connection with Raj, which is an attempt by the government to prove that Raj was part of an insider trading “ring.”
Here’s a basic sketch of how they’re all connected to the business school and each other.
Kumar and Gupta co-founded ISB.
Rajaratnam was on the board of ISB.
Gupta was in line to become the Chairman of Galleon International, Rajaratnam’s firm.
Anil Kumar looked up to Rajat Gupta as a mentor.
Kumar is cooperating with the government. He has admitted that he both passed tips to Raj and traded on insider information for his own account.
Gupta has denied that he passed insider information to Raj. He’s currently suing the SEC for “singling” him out.