Goldman’s Gupta Named As Rajaratnam Berkshire Tipster

Apr 23 2010 | 1:10pm ET

Galleon Group founder Raj Rajaratnam was tipped off about Berkshire Hathaway’s $5 billion investment in Goldman Sachs in 2008 by a member of the investment bank’s board of directors.

Rajat Gupta, the former head of consulting firm McKinsey & Co. and Goldman director since 2006, passed confidential information about the deal to Rajaratnam prior to its public announcement in September 2008, The Wall Street Journal reports. Gupta, a longtime friend and business associate of Rajaratnam’s, was notified by letter that prosecutors had intercepted phone conversations between him and the Galleon chief, although it is unclear whether they have a tape of him giving Rajaratnam that Berkshire tip.

Rajaratnam is set to go to trial for his role in an alleged $50 million insider-trading circle in October. Eleven of the 21 people charged in the case have pleaded guilty, including a former McKinsey executive. Gupta has not been charged with, and denies, any wrongdoing.

Gupta has previously been identified as an alleged Rajaratnam tipster. In a court filing last week, prosecutors said Rajaratnam sought information about the Berkshire deal but did not identify who he received it from. The Journal says Gupta, who is stepping down from the Goldman board  next month, was the source.

Gupta did not participate in Monday’s Goldman board meeting. He has spoken to the firm’s lawyers, and reportedly denied any wrongdoing.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR