Friday, 27 May 2016
Last updated 49 min ago
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.