Gupta SEC Case Postponed Indefinitely

Jun 30 2011 | 12:43pm ET

The Securities and Exchange Commission has postponed for at least six months the unusual administrative proceeding against Rajat Gupta, the former head of McKinsey & Co. accused of being on of Galleon Group founder Raj Rajaratnam's key sources of insider information.

The regulator's chief administrative law judge, Brenda Murray, granted the stay on June 20. The SEC said the proceedings have been "postponed indefinitely," but did not provide any further information.

The administrative charges against Gupta, accused of passing tips about Goldman Sachs, on whose board he served, caused something of a furor. Gupta is the only one of the 24 people the SEC has taken civil action against in the Galleon case to face an administrative action rather than a jury trial; the former are widely seen as more favorable to the SEC.

Gupta, who had denied any wrongdoing, has sued the SEC demanding a full jury trial.

Gupta was not called as a witness at Rajaratnam's trial, which ended in his conviction on all counts last month. But his voice was heard in several taped phone calls between the men; prosecutors say that, in one case, Gupta called Rajaratnam only seconds after leaving a Goldman board conference call to tell him that bank had received a big investment from Berkshire Hathaway.


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