NEW YORK: One of the richest Indian-American in the United States, Rajat K. Gupta, former corporate chairman of an international consulting firm, and a member of the Boards of Directors of The Goldman Sachs Group, Inc. (‘‘Goldman Sachs’’) and the Procter & Gamble Company (“P&G”), was found guilty on Friday by a jury in the Manhattan federal court. He was convicted of conspiracy and securities fraud crimes stemming from his involvement in an insider trading scheme with his business partner and friend, Raj Rajaratnam, the founder and former head of the Galleon Group, said the New York's District Attorneys office.
US Attorney Preet Bharara stated: “Rajat Gupta once stood at the apex of the international business community. Today, he stands convicted of securities fraud.
He achieved remarkable success and stature, but he threw it all away.
Having fallen from respected insider to convicted inside trader, Mr Gupta has now exchanged the lofty board room for the prospect of a lowly jail cell.
Violating clear and sacrosanct duties of confidentiality, Mr Gupta illegally provided a virtual open line into the board room for his benefactor and business partner, Raj Rajaratnam.