Rajat Gupta

Natalia George
Yahoo! India News
26 November 2012

In 2012, insider trading was a term that got synonymous with former McKinsey managing director Rajat Gupta, who leaked inside information to hedge-fund manager Raj Rajaratnam.

Interestingly, Gupta liked to quote a verse from the Bhagvad Gita every time he addressed the students of Indian School of Business, which spoke about work ethic. As a teenager he lost both his parents, moved into IIT Delhi, then into Harvard, and at 45 became the first Indian-born chief of a US international corporation.

But that was the beginning of the end of the fairy tale for Gupta.

Gupta met Raj Rajaratnam through a common friend and in 2003, the duo started investing millions of dollars in Asian private equity funds that Gupta helped to start. In 2011, Gupta was convicted in Manhattan federal court for leaking Goldman Sachs boardroom secrets to Rajaratnam, who was implicated in a US government crackdown on insider trading over the past four years.

Gupta was sentenced to two years in prison in October this year, by a judge who described his actions as "disgusting" and "a terrible breach of trust."

The Wall Street titan was also ordered to pay a $5 million fine.

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