Goldman's Gupta Hit With New $13.9 Million SEC Fine
Rajat Gupta may still be walking around, free on bail, and not in jail. But at least he has less walking-around money these days.
On Wednesday, the U.S. Securities and Exchange Commission announced that the U.S. District Court for the Southern District of New York has levied an additional $13.9 million penalty against former Goldman Sachs board member Rajat K. Gupta, in punishment for his crime of "illegally tipping corporate secrets to former hedge fund manager Raj Rajaratnam."
This week's penalty is separate from the $92.8 million penalty that Rajaratnam was hit with in November 2011. It is on top of the October 2012 sentence of two years' jail time, and the $5 million fine imposed on Gupta, and a December 2012 order of disgorgement of profits.
Gupta has also been permanently barred from serving as an officer or director of any public company and from associating with any broker, dealer, or investment advisor in the future.
Gupta's crime was that he allegedly tipped Rajaratnam to the fact that Berkshire Hathaway was about to invest $5 billion in Goldman Sachs, before the deal was publicly announced, and gave other inside information, as well.
In a statement, the SEC Co-Director of the Division of Enforcement, George S. Canellos, asserted that "the sanctions imposed today send a clear message to board members who are entrusted with protecting the confidences of the companies they serve. If you abuse your position by sharing confidential company information with friends and business associates in exchange for private gain, you will be prosecuted to the fullest extent by the SEC."
The article Goldman's Gupta Hit With New $13.9 Million SEC Fine originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Goldman Sachs. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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