Ex-Goldman Director Faces Criminal Charges

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Former Goldman Director Rajat Gupta will face insider-trading related charges

Ex-Goldman employee and alleged insider trader, Raj Rajaratnam, will surrender to the FBI on Wednesday.

Rajat Gupta, former Goldman Sachs director and former head of McKinsey & Co, will surrender to the FBI on Wednesday to face criminal insider trading-related charges, said a person familiar with the investigation. Gupta, will face criminal charges for alleged insider trading as a co-conspirator of another former hedge fund mogul, Raj Rajaratnam.

Prosecutors cited Gupta as an unindicted co-conspirator in the criminal case against billionaire hedge fund founder Raj Rajaratnam earlier this year. Rajaratnam was convicted in May 2011 by a New York federal jury after a two-month- trial. On October 13, a judge sentenced him to 11 years in prison, the longest recorded prison term for insider trading.

Gupta’s attorney, Gary Naftalis, did not comment late Tuesday on possible criminal charges. He issued a statement echoing his previous comments that Gupta committed no wrongdoing.

Any allegation that Rajat Gupta engaged in any unlawful conduct is totally baseless. The facts demonstrate that Mr. Gupta is an innocent man and that he has always acted with honesty and integrity. He 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.

Ellen Davis, a representative for Manhattan U.S. attorney Preet Bharara, declined to comment on Gupta’s surrendering to authorities or any possible charges.

Mad Mike’s America thanks Reuters.

Can we expect more indictments in the coming months of Goldman and other financial industry moguls as a result of the burgeoning Occupy Wall Street protests?