by The Compliance Exchange on June 15, 2012
A federal jury convicted Rajat Gupta, once an executive and board member at the pinnacle of American business, of insider trading, capping the fall of the most prominent figure caught in the government’s drive to stop the leaking of corporate secrets to Wall Street.
A former director at Goldman Sachs Group Inc. GS +1.37% and Procter & Gamble Co., PG -0.74% Mr. Gupta was convicted on three counts of securities fraud and one count of conspiracy for passing along confidential boardroom information about both companies to a hedge fund that earned millions of dollars trading on his tips. He was acquitted of two counts of securities fraud.
Mr. Gupta faces up to 20 years in prison on each of the fraud charges and up to five years for the conspiracy charge. But his sentence is likely to be significantly lower under federal guidelines. Sentencing is set for Oct. 18.