Rajat Gupta, a member of Goldman Sachs’ board of directors, is under investigation for allegedly providing insider information to the Galleon Group founder Raj Rajaratnam, a newspaper report has claimed.Unnamed sources close to the matter told Wall Street Journal that Mr Gupta, thought to be an associate of Mr Rajaratnam, is being investigated.Mr Rajaratnam is one of 22 traders charged over alleged involvement in what is thought to be one of the largest insider trading rings of all time.A recent letter, filed in court last week, revealed that stocks in Goldman Sachs, along with Cisco and AT&T, were among those illegally traded by the Galleon Group founder and his accomplices.A spokesman for the member of Goldman Sachs’ board told the news provider: “Mr Gupta is unaware of any examination of any such issue and has done nothing incorrect.”No criminal charges have been filed against the banker.Meanwhile, Mr Rajaratnam and his colleague Danielle Chiesi both deny the charges against them.A trial is expected to start at a federal court in New York later this year.
Posts Tagged ‘Group Founder’
Goldman Sachs board member quizzed over insider trading
April 16th, 2010 
Before You Invest 
Posted in Finance Fraud 
Tags: Accomplices, Board Member, Board Of Directors, Cisco, Colleague, Criminal Charges, Galleon, Galleon Group, Goldman Sachs, Group Founder, Gupta, Insider Information, Insider Trading, Mr Rajaratnam, Newspaper Report, Quizzed, Raj Rajaratnam, Unnamed Sources, Wall Street, Wall Street Journal 
Comments OffBull Market Believers
March 11th, 2010 Before You Invest Three money managers who called the turn in March 2009 see huge gains ahead; a fourth dissentsVeteran money manager Laszlo Birinyi will never forget the moment a year ago when the last ounce of confidence disappeared. New York University Professor Nouriel Roubini and many other prominent pundits were convinced the economy was in free fall, and that the consequences for the stock market would be dire.
Posted in Finance Fraud Tags: Barack Obama, Barton Biggs, Chief Investment Strategist, Corporate Earnings, Earnings Growth, Grantham Mayo Van Otterloo, Group Founder, Jeremy Grantham, Laszlo Birinyi, Leuthold Group, New York University, Next Presidential Election, Nouriel Roubini, Steve Leuthold, Stock Market Prediction, Stock Market Value, Subprime Mortgages, Term Investors, Traxis Partners, York University Professor Comments OffSeven more indicted in Galleon case
January 23rd, 2010 Before You Invest Seven more people have been indicted in the Galleon Group insider trading ring court case.Previously only two people had been indicted – Danielle Chiesi and Galleon Group founder Raj Rajaratnam.Another seven people have already entered guilty pleas in regard to the case.Among those brought before a grand jury this week are Zvi Goffer, a former Galleon Group employee who went on to found trading firm Incremental Capital.Prosecutors have claimed that Mr Goffer played a leading role in the insider trading – he is alleged to have passed out prepaid phones to tippers to limit the chances of them getting caught.He was also nicknamed ‘Octopussy’ by investigators on the grounds of his reported ability at getting hold of insider information.Others charged in the latest indictment include Mr Goffer’s brother Emanuel, Incremental workers Michael Kimelman and David Plate and two lawyers, Jason Goldfarb and Arthur Cutillo.Last month, insiders told Bloomberg that Galleon Group is to shut down its operations in Singapore as the company is place through liquidation.
Posted in Finance Fraud Tags: Chiesi, Court Case, Emanuel, Galleon, Galleon Group, Goffer, Goldfarb, Grand Jury, Group Employee, Group Founder, Guilty Pleas, Indictment, Insider Information, Insider Trading, Insiders, Octopussy, Prepaid Phones, Prosecutors, Raj Rajaratnam, Zvi Comments OffMcKinsey director paid $2.6m for role in Rajaratnam insider trading
January 9th, 2010 Before You Invest Anil Kumar, a former director at management consultancy McKinsey & Co, has admitted to his involvement in the Galleon Group insider trading ring.As part of his guilty plea, Kumar said that he had received $1.75 million by Galleon Group founder Raj Rajaratnam for inside information about clients of McKinsey.Kumar added that he had received a total of around $2.6 million for his role in the scam.He said he received payment for his services from the Galleon Group via a Swiss bank account – money he then invested in the hedge fund using an account in the name of one of his employees at home.Kumar met Rajaratnam in the 1980s when the pair attended the Wharton School of Business at the University of Pennsylvania.After admitting his guilt, Kumar offered an apology to his former colleagues.”I understood Mr Rajaratnam was going to trade securities.
Posted in Finance Fraud Tags: Advanced Micro Devices, Anil Kumar, Ati Technologies, Galleon, Galleon Group, Group Founder, Guilty Plea, Hector Ruiz, Hedge Fund, Insider Knowledge, Insider Trading, John Dowd, Management Consultancy, Mckinsey, Newspaper Reports, Secret Information, Seven Weeks, Swiss Bank Account, University Of Pennsylvania, Wharton School Of Business No Comments »
