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

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

In search of the ‘new normal’ at the Fed

The Federal Reserve keeps baby-stepping toward a “normalization” of monetary policy. But just what is normal?

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.