Here is information that I have found. This post is not my personal opinion. I encourage you to look at the sources I cite, then draw your own conclusions. Remember, there is no censorship on the Internet (nor, in my opinion, should there be) so anyone can post anything.
Rajat Gupta, head of McKinsey & Company, and former Goldman Sachs and Proctor & Gamble board member, has been indicted for insider trading (more specifically, securities fraud). He is also a contributor to the Democrat Party, giving more than $100,000 to candidates. Almost all of his contributions have been to Democrat candidates. A list of his political contributions can be found at this site. I do not know this list to be complete, but a perusal shows only one non-Democrat: Larry Pressler of South Dakota, who on November 10, 2009, was named by President Barack Obama to the US Commission for the Preservation of America’s Heritage Abroad.
Rajat Gupta has connections to President Obama and other Democrats. He attended numerous fundraising dinners in Connecticut and made maximum allowable contributions to Obama’s campaign. Also Gupta and his company, McKinsey & Company, gave maximum contributions to several Democrat candidates, including Chris Dodd, Hillary Clinton, and John Kerry.
Rajat Gupta surrendered to the FBI, was released on Thursday, October 27, 2011, by posting bail of $10 million and relinquishing his passport, and has had his trial set for April 9, 2012. He pleaded not guilty to all charges. The Securities and Exchange Commission (SEC) in March, 2011, accused Gupta of providing inside information about Goldman Sachs to his friend and business partner Raj Rajaratnam, head of Gallion hedge-fund group, and who is currently serving an 11 year prison term, the longest ever for anyone convicted of insider trading
The SEC alleges that Gupta gave Rajaratnam details he had learned at Goldman board meetings in 2008 about a $5 billion investment by Warren Buffett’s Berkshire Hathaway, Inc. There has been no indication yet that Gupta profited directly from the information he passed to Rajaratnam. But divulging corporate secrets to those who then profit from them is prohibited by law. On September 23, 2008, with Gupta on the telephone, the Goldman board met via telephone to consider Mr. Buffett’s $5 billion investment in Goldman. The SEC says that immediately after disconnecting from the board call, Gupta called Rajaratnam from the same line. A minute later, Galleon funds bought more than 175,000 shares of Goldman just before the market closed, and later netted a $900,000 profit.
Gary P. Naftalis, Gupta’s attorney, said that his client and Rajaratnam communicated for “legitimate reasons,” and that Gupta didn’t trade in any securities, didn’t tip Rajaratnam so he could trade, and didn’t share in any profits. During Rajaratnam’s trial, his attorney, John Dowd, said the prosecution had it wrong, that inside information was not revealed on the call, that the call was about Rajaratnam getting ready for a meeting with a top executive at Goldman Sachs, Gary Cohn. Gupta was just doing his job. Lloyd Blankfein, Goldman Sachs CEO, on the witness stand, said that what board members discuss during the meeting is confidential. He also said Gupta violated company policy by telling Rajaratnam about the Goldman-AIG-Wachovia deal in preparation for his upcoming meeting with Cohn.
All of this may be coincidence, and Gupta has yet to have his day in court. All I can do is present information that I have found and have you reach your own conclusion. And, of course, you are always free to post any exculpatory information you find.Powered by Sidelines