The Securities and Exchange Commission of the United States has instituted public administrative and cease-and-desist proceedings against Rajat Gupta, Westport, Connecticut-based business consultant who served on the board of directors of Goldman Sachs and Procter and Gamble. These proceedings relate to insider trading charges brought against him by the SEC, for allegedly providing illegal tip-offs to Raj Rajaratnam, founder of Galleon Management and hedge fund manager. The SEC said Rajaratnam used the inside information to trade on behalf of some of Galleon’s hedge funds, or shared the information with others at his firm who then traded on it ahead of public announcements by the firms. The insider trading by Rajaratnam and others generated more than $18 million in illicit profits and loss avoidance. The text of the SEC order against Rajat Gupta can be downloaded here.
Updated: March 22, 2011 16:40 IST
United States SEC order instituting proceedings against Rajat Gupta