An FBI agent testifying in the insider-trading trial of former Goldman Sachs director Rajat Gupta said his alleged tips helped Raj Rajaratnam's Galleon Group make $13 million in profit and avoid $3.8 million in losses.
Billionaire hedge fund titan Steven A. Cohen, one of the most high-profile and controversial Wall Street figures of the last decade, has been implicated in what federal officials are calling “the largest insider trading case ever charged by the SEC,” according to The Wall Street Journal.
The trial of the biggest suspect in a big US crackdown on Wall Street insider trading, former Goldman Sachs director Rajat Gupta, started Monday in New York.Gupta, 63, could face a double-digit prison sentence if convicted in a probe that last year saw his friend, hedge fund magnate Raj Rajaratnam, sentenced to 11 years for insider trading.Gupta is in part accused of passing hugely sensitive -- and lucrative -- insider information about Goldman Sachs to Rajaratnam, founder of the Galleon Group.
Rajat Gupta, a former Goldman Sachs board member accused of insider trading, could face a 25-year sentence if convicted of sharing confidential Goldman information with Galleon Group's Raj Rajaratnam.Rajat Gupta, a formerGoldman Sachs Group Inc.board member accused of insider trading, won't testify this week in his own defense, his lawyer said.
For many people, the biggest shock of the Galleon Group’s insider trading case was not the implosion of the hedge fund group, nor the conviction of its leader, Raj Rajaratnam. It was the indictment—and subsequent conviction—of Rajaratnam’s friend, Rajat Gupta. The former managing director of McKinsey & Company, Gupta was not only one of the most respected members of the Indian-American business community, but he had achieved even greater public renown as a leading global philanthropist in his post-McKinsey career.
It’s been two decades since Michael Milken, aka “the junk bond king,” was sentenced to ten years in prison following a blockbuster insider trading investigation that shined a light on bad Wall Street behavior during the go-go 1980s. At the time, federal prosecutors hoped the Milken conviction, and that of his fellow Wall Street fraudster Ivan Boesky, would send a powerful message to Wall Street that there are serious consequences for insider trading.