The Securities and Exchange Commission just filed insider trading charges against Rajat Gupta.
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, the SEC said in a filing.
According to the SEC, Gupta allegedly tipped Rajaratnam on company earnings from both Goldman and Procter & Gamble. He’s also been accused of informing Rajaratnam on the $5 billion investment from Warren Buffett’s Berkshire Hathaway in Goldman back in 2008 during the financial crisis, the statement said.
(The SEC’s complaint against Gupta is 20 pages. We’ll have more details when we finish reading it.)
Gupta was arrested this morning and indicted on criminal insider trading charges in federal court in Manhattan.
United States Attorney Preet Bhara and the FBI’s Janice Fedarcyk announced a six-count indictment against Gupta for his involvement in an insider trading scheme with Rajaratnam.
Earlier this month, Rajaratnam was sentenced to 11 years in federal prison for orchestrating one of the largest insider trading schemes in history.