Wednesday, 1 October 2014
Last updated 1 hour ago
Oct 26 2011 | 11:45am ET
Rajat Gupta, the highest-placed of Raj Rajaratnam's alleged corporate tipsters, surrendered to the authorities this morning to face criminal insider-trading charges.
Gupta turned himself in to the Federal Bureau of Investigation in New York at about 5:15 a.m. A spokesman for the FBI said that the 62-year-old, who led consulting giant McKinsey & Co. for almost a decade, "is currently in custody and being processed."
He is expected to be formally charged later today. The indictment against him is currently under seal.
Gupta is expected to be accused of passing confidential information about both Goldman Sachs and Proctor and Gamble to Rajaratnam, a longtime friend and business partner. Gupta served on the boards of directors for both companies.
Gupta, who led McKinsey from 1994 until 2003, has consistently denied any wrongdoing. He is not expected to be accused of personally profiting from Rajaratnam's scam, and his lawyer has previously said he lost his entire investment with Galleon.
In an earlier proceeding, since dropped but likely to be revived, the Securities and Exchange Commission accused Gupta of tipping Rajaratnam about a surprise loss by Goldman in 2008 and a $5 billion investment by Berkshire Hathaway in the same year. At Rajaratnam's trial, where he was convicted of all 14 counts, Gupta did not testify, but his voice was heard on several wiretapped telephone calls with Rajaratnam. Goldman CEO Lloyd Blankfein, however, did testify—and said that the information passed by Gupta to the hedge fund manager was confidential.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...