The charges against Mr. Gupta will show that Gupta was the insider a member of financial establishment. If the charges are proven, it would be the worst kind of corporate betrayal for Goldman Sachs.
Mr. Gupta was named as Mr. Rajaratnam’s co-conspirator , unlike Mr. Rajaratnam and other insider traders, Mr. Gupta has been caught on tape discussing the alleged wrongdoing add the fact that he bought into a Galleon fund.
Prosecutors might have enough to win this case. Phone records shows Mr. Gupta calling Mr. Rajaratnam mere minutes after important Goldman board meetings, then Mr. Rajaratnam traded in the bank’s stock briefly after. Although Mr. Gupta was not paid money for the insider stock tips he gave, he benefited from Mr. Rajaratnam in other ways from the favours.
Federal prosecutors have been on something of a campaign against insider trading. Severe punishments like Mr. Rajaratnam’s unprecedented 11 years in prison should go a long way toward curbing the practice. What is disturbing is the majority culprits are of South Asian background (Indian).
http://www.moneyaccumulator.com/389/raj-rajaratnam-gets-11-years-for-insider-trading/
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