Rajat Gupta a former Goldman Sachs board member has been charged with insider trading. The charges are that he provided confidential info to Raj Rajaratnam founder of Galleon Group. The SEC also says he provided confidential info about Berkshire Hathaway’s planned $5 billion investment in Goldman. Rajaratnam’s trial begins next week. Gupta is the second Harvard Business School Graduate to be implicated in the hedge fund insider trading investigation, the first three weeks ago was Harvard B School grad Sam Barai of Barai Capital Management. Born in 1948, Rajat Gupta is Chairman of the International Chamber of Commerce, a former Independent Director of Goldman Sachs, Member of The Board of Trustees of The University of Chicago and holds an M.B.A from The Harvard Business School.
In addition, Gupta serves on the board of American Airlines Inc. (Director and Member of Audit Committee), Genpact LTD. (Chairman and Member of Nominating and Governance Committee), Procter & Gamble Co. (Director), Goldman Sachs Group Inc. (Independent Director) and Sberbank (Independent Member of the Supervisory Council). He may be the most influential and richest person to be charged by the Securities and Exchange Commission. No information exists in the public at this time as to whether criminal charges will be brought against him. To date only civil charges have been brought by the SEC.