Gupta is charged by SEC

City A.M. Reporter
A FORMER Goldman Sachs Group director leaked secret details to Galleon Group hedge fund manager Raj Rajaratnam about Warren Buffett’s plan to invest $5bn (£3bn) in the Wall Street bank at the height of the financial crisis, according to US securities regulator charges yesterday.

The US Securities and Exchange Commission (SEC) said the director, Rajat Gupta, tipped Rajaratnam by phone just minutes before the public learned of the investment by Buffett’s Berkshire Hathaway, which helped ensure Goldman’s stability.

Gupta, 62, a former worldwide managing director at consulting firm McKinsey & Co, was also accused of tipping Rajaratnam about quarterly earnings at Goldman and Procter & Gamble, where he was a director before resigning yesterday.

Rajaratnam, who faces a 8 March criminal insider trading trial, allegedly reaped over $18m from the tips.