Ex-Goldman Sachs director Rajat Gupta fined $13.9 million for insider trading
A federal judge Wednesday ordered former Goldman Sachs board member Rajat Gupta to pay a $13.9 million penalty related to insider trading, the Securities and Exchange Commission announced.
Under the order, signed by US Judge Jed Rakoff, Gupta is also barred from acting as an officer or director of a public company and from associating with any broker, dealer or investment advisor, the SEC said.
The SEC’s case against Gupta concerns alleged civil violations stemming from his communications with former Galleon hedge fund tycoon Raj Rajaratnam.
The communications allegedly discussed Berkshire Hathaway’s $5 billion investment in Goldman Sachs and nonpublic details about Goldman’s financial results in 2008.
In a parallel criminal case, a New York jury in June 2012 convicted Gupta of spilling boardroom secrets to Rajaratnam. Rakoff sentenced Gupta to two years in jail last October and ordered a $5 million criminal fine.
Gupta is free on bail pending a decision to his appeal. A US Court of Appeals panel heard arguments in May.
In addition to his spot on the Goldman Sachs board, Gupta had been head of the renowned consultancy McKinsey & Co and a director of Procter & Gamble, making him one of the most successful Indian immigrants in the United States.