A federal jury in Manhattan has found former McKinsey & Co. senior partner Rajat Gupta guilty of insider trading.
Gupta was found guilty of securities fraud and conspiracy on Friday, the culmination of a trial that began May 21. He had been accused of leaking inside information to Galleon Group founder Raj Rajaratnam, himself serving an 11-year sentence for insider-trading crimes (a sentence he is appealing). Gupta faces a maximum sentence of 20 years for the securities fraud conviction while conspiracy carries a maximum prison sentence of five years.
Gupta, a former Goldman Sachs director, is the biggest fish caught to date in a crackdown on insider trading launched in October 2009 by the office of the Manhattan U.S. Attorney Preet Bharara and the Federal Bureau of Investigation. To date, cases have been brought against 66 traders and their sources.
Kolkata-born Gupta served on the boards of the Rockefeller Foundation and the Bill & Melinda Gates Foundation. He is also a co-founder of the Indian School of Business in Hyderabad.