Gupta Trial Opens

May 21 2012 | 1:50pm ET

Former McKinsey & Co. chief Rajat Gupta went on trial today in New York, charged with passing confidential information to Galleon Group founder Raj Rajaratnam.

The trial, which could last up to four weeks, began with a morning conference before jury selection began. The panel that will decide Gupta's fate—he faces decades in prison if convicted—is expected to be seated this afternoon, followed by opening statements later today.

This morning, prosecutors looked beyond those trial stages, indicating that they will call  current and former Goldman Sachs board members as witnesses this week. Former Vice Chairman Byron Trott and current director Bill George, a Harvard Business School professor, lead off a Goldman-heavy series of witnesses expected to include Goldman CEO Lloyd Blankfein and Goldman President Gary Cohn.

Gupta, who served on Goldman's board, is accused of passing confidential information about the company to Rajaratnam, a long-time friend and business partner. At Rajaratnam's trial last year, which resulted in the hedge fund manager's conviction and sentencing to 11 years in prison, Blankfein testified that Gupta had violated Goldman policies in telling Rajaratnam that Goldman might look to buy a commercial bank or troubled insurance giant American International Group. Blankfein told the Rajaratnam jury that that information, and other tips Gupta passed, were confidential.

Gupta's lawyers are expected to argue that their client's friendship with Rajaratnam had soured before he is alleged to have tipped the hedge fund manager off. Gupta is also accused of passing confidential information about another company on whose board he served, Procter & Gamble.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

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.