The Department of Justice (DOJ) could soon bring criminal charges against Rajat Gupta, a former Goldman Sachs executive who allegedly was involved in an insider-trading scheme with Galleon Group co-founder Raj Rajaratnam.
Gupta purportedly leaked confidential information about Goldman Sachs to Rajaratnam at the peak of the financial crisis, including information about Berkshire Hathaway Inc.’s $5 billion investment in the bank.
The Securities and Exchange Commission, which in June postponed an action alleging that Gupta had provided inside tips to Rajaratnam, will wait to see if the DOJ brings criminal charges against Gupta before refilling civil charges against him.
Rajaratnam was convicted in May on all 14 conspiracy and securities fraud criminal counts against him and could be sentenced to up to 24 ½ years in prison on Sept. 27, although he has asked a judge to reduce his proposed sentence.
