New York: Rajat K. Gupta, the highest-ranking corporate executive to become involved in a push by the government to root out insider trading, was accused Wednesday of leaking confidential information while serving as a director at Goldman Sachs Group Inc. and Procter & Gamble Co.
In a 6-count condemnation, federal prosecutors in Manhattan alleged that Gupta, the earlier head of global consulting firm McKinsey & Co., leaked details about the companies’ financial condition and an investment by Warren Buffett’s Berkshire Hathway Inc. to ex-hedge-fund titan Raj Rajaratnam, who was sentenced prior this month to serve 11 years in prison for insider trading.
The 62-year-old Gupta surrendered to the Federal Bureau of Investigation (FBI) on Wednesday morning and is expected to emerge in federal court in Manhattan later Wednesday.
The charges against Gupta come among the government’s unique crackdown on what it explained as rampant illegal trading. Since late 2009, federal prosecutors in Manhattan have charged 55 individuals with insider trading, resulting in 51 convictions or guilty appeals.
Gary Naftalis, Gupta’s lawyer, has said in a statement that “Gupta is innocent and has always acted with honesty and integrity. Mr. Gupta did not trade in any securities, did not tip Mr. Rajaratnam so he could trade, and did not share in any profits as part of any quid pro quo,” Mr. Naftalis said, adding that he would fight any charges.”