Monday, May 21, 2012

Prosecutor: Gupta ‘Threw Away His Duties,’





Rajat Gupta, who was a director at Goldman Sachs Group Inc. (GS), “threw away his duties” to the company when he tipped hedge-fund co-founder Raj Rajaratnam to news that the bank would get a $5 billion investment, a prosecutor told jurors, Bloomberg reports. 

At the start of Gupta’s insider-trading trial, Assistant U.S. Attorney Reed Brodsky told jurors that Gupta broke the law when, immediately after a Goldman Sachs board meeting on Sept. 23, 2008, he informed Rajaratnam that Warren Buffett’s Berkshire Hathaway Inc. (BRK/A) would invest $5 billion in the firm. Rajaratnam, Gupta’s friend and co-founder of Galleon Group LLC, traded on the tip, Brodsky said….

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