20 October, 2020

On Corporate Secret Service

A posterboy for Indian Americans, Rajat Gupta is charged with financial misdeeds

AP
On Corporate Secret Service
outlookindia.com
-0001-11-30T00:00:00+05:53

What The Scam Is About

  • Rajat Gupta is accused of passing information about Warren Buffet’s $ 5 billion investment in Goldman Sachs to Galleon Group’s Raj Rajaratnam, who used them to make a killing in the stockmarket
  • Also, on June 10, 2008 Goldman CEO tells board of firm’s improved earnings
  • Flurry of calls between Gupta and Rajaratnam; latter buys 350,000 Goldman shares 
  • Six days later, Goldman announces quarterly earnings
  • Rajaratnam sells shares, earns illicit profits of $ 13.6 million

***

When former India captain Mohammed Azharuddin was accused of fixing matches, there were many who gasped in disbelief: “Why did he have to fix matches? He was already so rich, so successful.” These are precisely the questions the Indian community in the US are asking of Rajat Gupta, who has been accused of passing confidential tips to Galleon Group’s billionaire hedge fund...

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