Rajat K. Gupta, the retired head of the consulting firm McKinsey & Company and a former Goldman Sachs board member, was found guilty on Friday of conspiracy and securities fraud. He is the most prominent business executive convicted in a wave of prosecutions that followed the government’s sweeping investigation into insider trading on Wall Street.I'll believe that this is real when a Caucasian is put in the dock.
After a monthlong trial in Federal District Court in Manhattan, a jury took only two days to deliberate before reaching a verdict. It found Mr. Gupta guilty of leaking confidential information about Goldman to his former friend and business associate, the fallen hedge fund titan Raj Rajaratnam, on three different occasions in 2008. He was also convicted of conspiring in an insider trading scheme with Mr. Rajaratnam.
Mr. Gupta was found not guilty of two instances of tipping Mr. Rajaratnam, including an allegation that he divulged secret news about Procter & Gamble, where he also served on the board.
“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,” Preet Bharara, the United States attorney in Manhattan said in a statement.
“Almost two years ago, we said that insider trading is rampant, and today’s conviction puts that claim into stark relief, ” he said.
Until we start seeing pale people frog marched out of their offices in handcuffs, this isn't real.