Arab Today, arab today exgoldman director gupta charged with fraud
Last Updated : GMT 05:53:48
Arab Today, arab today
Arab Today, arab today

Ex-Goldman director Gupta charged with fraud

Arab Today, arab today

Arab Today, arab today Ex-Goldman director Gupta charged with fraud

New York - AFP

Ex-Goldman Sachs director Rajat Gupta turned himself in  to the FBI, and then pleaded not guilty in court to massive securities fraud before being freed on $10 million bail pending trial. The indictment of the biggest fish yet in a growing insider trading scandal reverberated around Wall Street, where more than 50 fraudsters have been netted since 2009 in an intensifying crackdown by prosecutors. Gupta\'s appearance in a Manhattan courtroom was a stunning turnaround for the former managing director of consulting powerhouse McKinsey & Company -- a corporate giant who sat on the boards of Goldman Sachs and Procter & Gamble. Indian-born Gupta stands accused of being the \"illegal eyes and ears\" of Sri Lankan-born friend Raj Rajaratnam, who turned a tidy profit by buying or selling Goldman shares in his multi-billion-dollar hedge fund complex Galleon. Gupta was charged Wednesday with five counts of securities fraud and one count of conspiracy to commit securities. The judge freed him on bail but kept his passport, setting a trial date of April 9. The 62-year-old, who is also know for his philanthropic work through the Bill and Melinda Gates Foundation and The Global Fund, faces over 100 years in prison and a $25 million fine if found guilty. \"We wish to enter a plea of not guilty to all charges,\" Gupta\'s star white-collar defense lawyer Gary Naftalis told the court, dismissing the allegations earlier as \"totally baseless.\" Recorded phone calls between the two men were played at the trial of Rajaratnam, who earlier this month received the heaviest US sentence for insider trading, 11 years, still far below what prosecutors had sought. Prosecutors said Gupta tipped Rajaratnam about Warren Buffett\'s surprise $5 billion investment in Goldman Sachs during the financial crisis, allowing Rajaratnam to profit from trade before the market knew about the transaction. He also allegedly told Rajaratnam in advance when Goldman was about to post its first ever quarterly earnings loss, another major event on the market. Gupta is alleged to have placed a call to Rajaratnam 23 seconds after the board meeting ended, prompting the Galleon owner to sell his entire holding of Goldman Sachs stock, saving millions of dollars for his hedge funds. Manhattan US Attorney Preet Bharara said Gupta had squandered the trust of some of America\'s top companies to help Rajaratnam, \"who reaped enormous profits from Mr. Gupta\'s breach of duty.\" The insider trading by Rajaratnam and others produced more than $18 million in illicit profits and loss avoidance, according to the Securities and Exchange Commission. \"The conduct alleged is not an inadvertent slip of the tongue by Mr Gupta,\" said FBI Assistant Director-in-Charge Janice Fedarcyk. \"His eagerness to pass along inside information to Rajaratnam is nowhere more starkly evident than in the two instances where a total of 39 seconds elapsed between his learning of crucial Goldman Sachs information and lavishing it on his good friend. \"That information (captured by the FBI) was conveyed by phone so quickly, it could be termed instant messaging.\" Gupta was allegedly a direct or indirect investor in some of the Galleon hedge funds. Naftalis insisted Gupta was innocent and would fight the charges. \"The facts demonstrate that Mr Gupta is an innocent man and that he has always acted with honesty and integrity,\" the attorney said. \"He did not trade in any securities, did not tip Mr Rajaratnam so he could trade, and did not share in any profits as part of any quid pro quo.\" Rajaratnam was also slapped with new charges in Wednesday\'s indictment but it was not immediately clear if he could face another trial and more time on his sentence, which he begins next month. Gupta, who comes from humble roots in Kolkata and worked his way up to the very top of McKinsey, joined the Goldman board in November 2006. The naturalized US citizen became chairman of the International Chamber of Commerce last July. A Harvard Business School graduate, he has been affiliated with a number of organizations, including the United Nations, where former secretary-general Kofi Annan tapped him in 2005 as his special advisor for management reform.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today exgoldman director gupta charged with fraud Arab Today, arab today exgoldman director gupta charged with fraud

 



Arab Today, arab today
Arab Today, arab today Fadi explains secrets of  Nancy Ajram's newlook

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars
View News in Arabic - Business: قضايا ساخنة
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Actress Lobna Abdel Aziz proud of her career

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday