Board Member of Goldman Sachs and Procter & Gamble Charged in Insider Trading Scheme

[PoliticAverse]

Source: U.S. Securities and Exchange Commission


Washington, D.C., March 1, 2011 – The Securities and Exchange Commission today announced insider trading charges against a Westport, Conn.-based business consultant who has served on the boards of directors at Goldman Sachs and Procter & Gamble for illegally tipping Galleon Management founder and hedge fund manager Raj Rajaratnam with inside information about the quarterly earnings at both firms as well as an impending $5 billion investment by Berkshire Hathaway in Goldman.

The SEC’s Division of Enforcement alleges that Rajat K. Gupta, a friend and business associate of Rajaratnam, provided him with confidential information learned during board calls and in other aspects of his duties on the Goldman and P&G boards. Rajaratnam used the inside information to trade on behalf of some of Galleon’s hedge funds, or shared the information with others at his firm who then traded on it ahead of public announcements by the firms. The insider trading by Rajaratnam and others generated more than $18 million in illicit profits and loss avoidance. Gupta was at the time a direct or indirect investor in at least some of these Galleon hedge funds, and had other potentially lucrative business interests with Rajaratnam.

Read more: http://www.sec.gov/news/press/2011/2011-53.htm

[aquart]

1. Only one of them? Please.

[northoftheborder]

2. And to think they prosecuted Martha Stewart for her miniscule misdeed, sent her to prison, while...

all these crooks were having fun with their massive corruption which brought down the whole country. Was she supposed to be the "fatted calf"? That ain't right. I was so glad the man who produced "Inside Job" said something at the Awards about the non-justice going on with the fianancial mafiosos.

[demigoddess]

6. face it, she was jailed because she was a woman.

And maybe she did not have the cronies on her side.

[closeupready]

11. From what I recall, Martha tried initially to blame her administrative assistant.

So I have no warm fuzzies for her, and she lied to federal officials.

[northoftheborder]

12. but you cannot compare her crime with those of the Banksters, who are getting away with it

[closeupready]

14. Absolutely.

Don't get me wrong - I agree with you.

[Steerpike]

3. If they

prosecuted all the guilty ones...most of The President's economic team would (should) be in jail.

[ThomCat]

4. I wonder what this guy did to get on the shit list

so that they are willing to prosecute him for what they all do anyway?

We all know that the SEC has a policy of covering up insider trading and protecting the wealthy who break the rules. This guy is the scapegoat, the example they can point to so that they can claim they do their job while they now let all the other criminals go about their daily crimes with impunity. So we have to wonder who this guy offended, and how, to end up becoming the scapegoat.

More importantly, how do we take down the corrupt system so that the SEC will actually prosecute ALL of the criminals instead of just the occasional scapegoat to make a token example? How do we get them to really, truly clean up wall street and the trading floors so that it is only the exceptions that manage to get away instead of it being only the exceptions that they bother to pursue?

[JDPriestly]

5. Someone must have watched the Academy Awards.

Maybe we will start getting a little tiny bit of justice now that everyone watching the Awards show will have heard about the fact that no bankers have been convicted of the fraud they committed.

Note to the Justice Department: prosecute the fraud while you are at it. It really is not that hard to prove fraud. You just hire huge numbers of paralegals and law students to go through the banks' documents, the mortgage company documents, one loan at a time. Come on now. You can do it.

[Kingofalldems]

7. K and R

The subject will not be changed

[Thav]

8. It's not "insider trading"

It's "being competitive"

[russspeakeasy]

9. They will be "nailed" with $500 fines and told not to do this again.

Eric Holder will suspend the fine and reimburse their
expenses.

[crazylikafox]

10. So is it time to bring out the guillotine yet?????

[northoftheborder]

13. yes

[plumbob]

15. Yep, failing that, a huge lengthy sentence without the possibility of

parole.

Prison job? Cleaning toilets with a toothbrush!







(I can dream)

[PoliticAverse]

17. He'll more likely get time playing tennis in a club Fed.... n/t

[PoliticAverse]

16. Timeline of the insider trading (from the Assiciated Press)

http://www.cnbc.com/id/41867399

[Kingofalldems]

18. Keep this kicked