Former Goldman Director Denies Insider Trading
Rajat Gupta’s lawyer says that SEC charges of insider trading against his client are “totally baseless.”
The former Goldman Sachs Director has been charged with allegedly tipping hedge fund manager Raj Rajaratnam off to insider information in the giant SEC vs. Galleon case.
Gary Naftalis, Gupta’s lawyer, says that Gupta is not accused of trading in the stocks or sharing in any profits. Naftalis said Gupta did nothing wrong and stands by his 40-year record of ethical conduct, integrity and commitment to keeping clients’ confidence.
Gupta is alleged to have told Rajaratnam of a $5 billion investment by Warren Buffett in Goldman Sachs before the information became public.
“The Galleon hedge fund managed to buy nearly 300,000 shares of Goldman stock just before the markets closed. The shares soared when news of Buffett’s investment was disclosed.” Bloomberg reports. Rajaratnam is said to have sold the stock for a $900,000 profit.
Rajaratnam was taken into custody in New York on Oct. 16, 2009 in what is being called the USA’s largest hedge fund insider-trading scheme. He is being accused of insider trading and securities fraud, generating as much as $49 million in profit. The majority of the stocks involved are in technology, including, IBM, Intel, Akamai Technologies Inc, Polycom Inc, Hilton Hotels Corp, Google Inc, Sun Microsystems Inc SUNW.TI, Clearwire Corp, Advanced Micro Devices, ATI Technologies Inc and eBay Inc.
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