Former Goldman Sachs Director Found Guilty Of Insider Dealing

A federal jury in the US has found former Goldman Sachs director Rajat Gupta guilty of leaking confidential information about the bank. Gupta allegedly tipped his hedge fund manager friend, Raj Rajaratnam, three times with price-sensitive information from Goldman Sachs's boardroom. In the RCE Newsletter April 2012 we mentioned the SEC investigation concerning insider dealing at Galleon. This investigation resulted in the criminal conviction of Raj Rajaratnam last year. He was sentenced to 11 years in prison.

In 2008-2009 Galleon bought Goldman Sachs shares, just before a large investor, Warren Buffet, was to make an investment in the bank. Galleon sold the shares just...