Rajat Gupta was a corporate director at Goldman Sachs and McKinsey who was found guilty of 3 counts of securities fraud for relaying confidential boardroom information from Goldman Sachs to hedge fund manager Raj Rajaratnam at Galleon Group. Wiretaps revealed Gupta discussing Warren Buffett's investment in Goldman Sachs and the company's quarterly losses with Rajaratnam. Rajaratnam then traded on this insider information for profit. Gupta faced up to 20 years in prison but was ultimately sentenced to 2 years.

1. RAJAT GUPTA
Presented By:
Shruti Gupta

2.  Rajat Gupta, corporate director at Goldman
Sachs (and once at Mckinsey).
 Found guilty of 3 securities frauds and of
relaying confidential Goldman Sachs
boardroom information to hedge fund titan
Rajaratnam at Galleon Group.
 Caught via government-placed wiretaps
listening to Rajaratnam and Gupta discussing
Warren Buffett's Berkshire Hathaway Inc.’s $5
billion investment and Goldman Sachs’s first
quarterly loss.
 Rajaratnam bought Goldman Sachs shares for
profit.
 Found guilty of 3 securities frauds and of
relaying confidential Goldman Sachs
boardroom information to hedge fund titan
Rajaratnam at Galleon Group.
 Faced 20 years for fraud charges, 5 for
conspiracy charge, but went for 2.

3.  Goldman Sachs is a leading investment banking and financial
consulting firm.
 Ranked 68 by Fortune 500.
 Other small sources constantly rate them high up.
 McKinsey and Co. is a leading senior management consulting firm.
 Ranked No. 1 under Vault’s consulting rankings for 2014.
 Manager in question has been on board of directors for both
companies, as well as The Bill and Melinda Gates Foundation,
American Airlines, and Proctor and Gamble.

4. Educational Background
 MECHANICAL ENGINEER IIT- DELHI (1971)
 MBA- HARVARD BUSINESS SCHOOL (1973)

6. Insider trading is the trading of
a corporation's stock or
other securities (e.g. bonds or stoc
k options) by individuals with
potential access to non-public
information about the company.

9. An unlucky man
Jun 14th 2012, 23:47 by T.E. | NEW YORK

11.  2 described court meetings in 2012 and 2014.
 Wiretaps reveal insider trading between Rajaratnam and
Gupta.
 Gupta is convicted.
 11 of the 12 jury members believe he is guilty, until evidence
convinces the 12th.
 Took only 10 hours, compared to Rajaratnam’s case taking
12 days.
 Gupta was put up as “free on bail” for a second count.
 He planned to appeal.

12.  Lawyers challenge conviction by mentioning a $10 million
fallout Gupta had with Rajaratnam.
 Lawyers also claim Rajaratnam never traded based on the
exchanged information.
 Prosecutors said Rajaratnam tipped Gupta off.
 Lawyers claim Gupta never benefitted or traded on any tip.
 Prosecutors pieced together phone calls and other exchanges
supported by testimonies that included Goldman Sachs CEO
Lloyd Blankfein.

13.  Rajat wanted new trail in 2014, but court rejected
it.
 Wiretaps are mentioned again, and lawyers say
what Rajaratnam says is “the self-serving hearsay
of a known fabulist.”
 Prosecutors claim it is non hearsay.
 Rajat was sentenced to 2 years, freedom pending
appeal.
 Appeal is rejected.