Beginning Next Week: InsideCounsel will become part of Corporate Counsel. Bringing these two industry-leading websites together will now give you comprehensive coverage of the full spectrum of issues affecting today's General Counsel at companies of all sizes. You will continue to receive expert analysis on key issues including corporate litigation, labor developments, tech initiatives and intellectual property, as well as Women, Influence & Power in Law (WIPL) professional development content. Plus we'll be serving all ALM legal publications from one interconnected platform, powered by, giving you easy access to additional relevant content from other InsideCounsel sister publications.

To prevent a disruption in service, you will be automatically redirected to the new site next week. Thank you for being a valued InsideCounsel reader!


Rajat Gupta surrenders to FBI

Former Goldman Sachs director is in custody

Rajat Gupta, a former Goldman Sachs director and top partner at McKinsey & Co., surrendered to federal authorities today in relation to an insider trading case.

In March, the SEC brought civil charges against Gupta, who the commission alleges leaked inside information to convicted insider trader Raj Rajaratnam, former hedge fund manager and Galleon Group founder. At the time, Gupta’s attorney said the SEC had launched a "flawed case premised in large part on unreliable evidence."

But during Rajaratnam’s recent trial, prosecutors revealed that Gupta contributed to the hedge fund manager’s acts of insider trading. On one occasion, 23 seconds after attending a board meeting in which members were informed Goldman was facing its first quarterly loss since 1999, Gupta called Rajaratnam. The next day, Rajaratnam sold all of his Goldman stock, saving millions of dollars. Gupta also informed Rajaratnam of a $5 billion investment Berkshire Hathaway was about to make in Goldman. Rajaratnam made nearly $1 million with that information. Rajaratnam was convicted of insider trading and sentenced to 11 years in prison earlier this month.

Gupta is currently in federal custody, however, charges against him have not yet been disclosed.


Cathleen Flahardy

Bio and more articles

Join the Conversation

Advertisement. Closing in 15 seconds.