Posted Jun 15, 2012 07:22 pm CDT
A 63-year-old former managing partner of McKinsey & Co. was convicted Friday in a high-profile insider trading case by a federal jury in Manhattan.
Rajat Gupta, who is also a former director of Goldman Sachs Group Inc. and Procter & Gamble Co., was accused by prosecutors of passing along boardroom secrets to Galleon Group hedge fund co-founder Raj Rajaratnam, who was previously convicted and is appealing his record 11-year sentence. Gupta, who was convicted on three counts of security fraud, acquitted on two more, and convicted on one count of conspiracy, faces maximum sentences of 20 years for security fraud and five years for conspiracy when he is sentenced in October, according to Bloomberg and the Wall Street Journal (sub. req.).
Montgomery McCracken Walker & Rhoad schairman Richard Scheff of told Bloomberg before the verdict was announced that a conviction would be an “extremely” significant victory for the feds.
“It doesn’t get much higher,” he told the news agency. “The conviction sends the message that no one is off-limits.”
The DealBook page of the New York Times also has a story.
ABAJournal.com: “Indictment Suggests Business Dealings Are Gupta’s Motivation for Insider Tips Worth $23M”
ABAJournal.com: “Hedge Fund Co-Founder Rajaratnam Told to Pay Record $92.8M SEC Fine Within 14 Days”