updated 09:54 pm EDT, Fri June 15, 2012
Gupta convicted on four counts, acquitted on two
Today, a federal Jury convicted Rajat Kumar Gupta of trading inside information in a case that involved Intel, Apple, and other technology firms. Out of a six total charges, prosecutors secured convictions on four, and Gupta was acquitted of two. The Wall Street Journal reports that Gupta -- a former director at Goldman Sachs and Proctor & Gamble -- is the most prominent figure yet caught in the government's efforts to stem the flow of insider information to Wall Street.
Gupta was convicted on three counts of securities fraud and one count of conspiracy for passing along confidential boardroom information about Goldman to a hedge fund, along with confidential information on Apple and Intel. The hedge fund went on to earn millions on Gupta's information, but its founder is now serving time following an insider trading conviction last year. Gupta was also acquitted on two securities fraud charges.
Pre-trial proceedings in Gupta's case revealed that another as-yet-unnamed Goldman Sachs employee had been caught on tape leaking insider information. That employee is rumored to be David Loeb, head of Asia equity sales for Goldman Sachs, and Gupta's defense attorneys argued that the evidence on Loeb proved that he had committed the crimes of which Gupta stood accused.
Gupta faces up to five years in prison for the conspiracy charge, as well as a maximum of 20 years for each of the three securities fraud convictions.