June 15th, 2012
12:21 PM ET

Ex-Goldman Sachs director convicted of insider trading

Rajat Gupta, the consummate corporate insider who was a former director at Goldman Sachs, was convicted of insider trading on Friday - the highest-profile conviction yet in a wave of federal cases focused on Wall Street misconduct.

The jury in New York, after just more than one day of deliberations, found him guilty of four of six criminal counts. The trial started on May 21, and Gupta did not testify in his own defense.

Gupta, who also served as head of consulting firm McKinsey & Co. and a director at Procter & Gamble, was indicted in October. The case is part of a wave of insider trading probes over the past two-and-a-half years that have yielded 66 indictments and 60 convictions. None of these defendants have been acquitted so far, though several cases are still pending.

Dubbed "Operation Perfect Hedge," the effort has utilized investigative tools like wiretaps and informants that are more commonly associated with other kinds of crime.

Post by:
Filed under: Courts • Crime • Justice
soundoff (14 Responses)
  1. ♚Mmmmm♛

    they should be charged for treason for in the name of greed they organize the total destruction of us economy...these are small fry...get the kingpin...

    June 15, 2012 at 1:12 pm | Report abuse |
  2. Nathaniel

    Watch out for the RICO charges! Racketeer influenced and Corrupt Organizations

    June 15, 2012 at 1:52 pm | Report abuse |
  3. Philip

    Even president Obama and much of congress are fully aware of who is the 'kingpen' Mmmmm refered to above.
    ALL of the worlds federal reserves answer to one, and only ONE authority. The authority of one single foreign bank located in Basil, Switzerland. (The famous Tower of Basil)
    These 60 convictions spread-out over 2 and a half years are like breadcrumbs leading people away from this truth. The entire worlds stock market exchange is nothing but a shell game (1 in 3 odds of winning) with stock brokers operating ponzi schemes.
    No wonder there has never been a leader of a nation call for auditing the Fed doing business in his country just as there has never been a US president call for an audit of the Fed here who own many many trillions of dollars worth of what was once our property.

    June 15, 2012 at 3:19 pm | Report abuse |
  4. Philip

    Of course the RICO statute should apply members of the Fed, stock brokers, investment bankers, boy raypers, etc.
    We are 99% sure they did it before we have them charged, but simply can't afford to pay for a thorough investigation.
    The RICO statute, if applied to boy raype cases, could see US confiscating church buildings and auctioning them off to pay for investions, which would yield even further convictions of super rich churches and their super rich leaders.
    RICO works on drug traffikers. Why not use it on financiers and boy humpers, for example.

    June 15, 2012 at 3:28 pm | Report abuse |
  5. RICO auctioneer

    Next item up for bids, the San Diego archdioses. Let's start the bidding out at a cool billion dollars...
    Who'll gimme a billion 1....do I hear a billion 1...One Billion One Million right there...ehb'd'd'd bidda who'll gimme a billion 2 (etc etc etc) 1 billion 6! SOLD! to the gemtleman from Venezueala.
    Next on the block we have this fine home via The Sanduskys...

    June 15, 2012 at 3:40 pm | Report abuse |
  6. raven

    Color me shocked. I'm surprised they didn't rat -hole a bunch of cash to buy themselves out of "emergencies" such as this.

    June 15, 2012 at 5:26 pm | Report abuse |
    • ♚Mmmmm♛

      lol...yah talkin'about that pickle jar of coins under the bed...?

      June 15, 2012 at 6:47 pm | Report abuse |
  7. raven

    What'd I say that got my post deleted? That I was surprised they hadn't rat-holed some cash? Whats deletion-worthy about that, it's true....??

    June 15, 2012 at 11:24 pm | Report abuse |
  8. raven

    Now it's back!!! Curiouser and curiouser thought Alice...

    June 15, 2012 at 11:38 pm | Report abuse |
  9. raven

    Lol, Mmmmm, you membered!

    June 16, 2012 at 12:01 am | Report abuse |
  10. my-name-here

    He is ex-CEO of Mckinsey not Goldman sachs ! He only briefly served as board director for limited time for goldman sachs. I wonder if there is a plot to try to keep mckinsey out of the press here.

    June 16, 2012 at 11:34 am | Report abuse |
  11. banasy©

    From wha I understand, he was retired from McKinsey, the consulting firm, and say as a board member of Goldman Sachs.

    June 16, 2012 at 11:54 am | Report abuse |
  12. Hamsta

    My question is: When are they going to convict Nancy Pelosi?

    June 16, 2012 at 12:45 pm | Report abuse |
  13. chrissy

    @ hamsta, or fake hamsta, no kidding? What is taking so long on that do you think? She made a mint on her insider trading on Visa info!

    June 16, 2012 at 12:56 pm | Report abuse |