Galleon’s disgraced ex-chief Raj Rajaratnam, who was recently sentenced to 11 years for insider trading, has just been hit with new charges.
“The SEC also filed new insider trading charges against Rajaratnam after first charging him with insider trading in October 2009,” the agency said as part of its insider trading charges filed against Rajat Gupta today.
Rajaratnam, who has already been convicted of running the largest insider trading scheme in history, is now facing charges that he received illegal tips from Rajat Gupta, a former McKinsey & Co. exec and Goldman Sachs board member.
According to the SEC, Gupta gave Rajaratnam non-public information involving company earnings for Procter & Gamble and Goldman Sachs.
The SEC also alleges that Rajaratnam received classified information about Warren Buffett’s Berkshire Hathaway’s impending $5 billion investment in Goldman in 2008 during the financial crisis.
Earlier this month, Rajaratnam was sentenced to 11 years in federal prison and slapped with a $10 million fine.
Gupta was arrested today and indicted on criminal insider trading charges in Manhattan federal court.