Inside the Rajat Gupta Insider Trading Scandal (Clinton connection, of course)

divanee dot com ^ | 10-26-11

[doug from upland]

Inside the Rajat Gupta Insider Trading Scandal By Sadia Khawaja on March 4th, 2011 0 Comments Tagged: Galleon Group, Goldman Sachs, Hedge Funds, Insider Trading, McKinsey, Proctor & Gamble, Raj Rajaratnam, Rajat Gupta

What happens when being at the epicenter of money, power, and respect is not enough?

Unethical conduct and corruption, apparently.

If money, power, and respect is having it all — then Rajat Gupta had just that.

Money: An approximate net-worth of about $100 million, while managing billion-dollar investments and access to high-profile account intel.

Power: One of the most well connected people in corporate America that you’ve probably never heard of…until now. After running McKinsey & Co. (only the world’s most reputable consulting firm) for nine years, he sat on the board of powerhouse companies, such as Goldman Sachs, Harman International, and Proctor & Gamble. He became recognized both domestically and internationally, as he grew up in southern Mumbai and Delhi and was one of the first Indian Americans to delve into corporate America and Wall Street. After attending Harvard Business school, he sat on its advisory board.

Respect: Everyone revered him. He commanded attention and worked his way to the top — and to the heart of Wall Street. Gupta is the father of four daughters and has been married to his wife Anita Mattoo Gupta for almost 40 years. He is the co-founder, along with Bill Clinton, of the American India Foundation. A mentor to young entrepreneurs and bankers everywhere, Gupta also sits on the advisory board for Wharton School of Business, UPenn, HBS, and MIT Sloan School of Management. Sought-after, praised, and celebrated, he is a man of many note-worthy milestones who commanded respect over time.

So now what? All that, and you want more? More money? More power? More respect?

More problems…

The 62-year-old, international business leader now faces serious charges from the Securities and Exchange Commission (SEC) of leaking confidential information of Goldman Sach’s and P&G’s earnings to his friend Raj Rajaratnam, a hedge fund manager of Galleon Group who is set to go on trial next week. Gupta allegedly helped Rajaratnam and his firm score $18 million in illegitimate profits — surprise, surprise — Gupta is also an investor in Galleon Group. Gupta denies any wrongdoing.

The greed, the lack of morale, and the larger-than-life egos that cloud judgements have the power to destroy everything that’s taken years to build. Though money, power, and respect may not come over night, they can certainly disappear that quickly. This goes beyond wanting more and speaks on a whole different level of narcissism and socioeconomic politics. We never thought we’d quote Kanye West in a socioeconomic scandal, but maybe Mr. West says it best when he declares that no one man should have all that power…

[ken5050]

Dougie..given the gov’t BIG win, and BIG sentence against Raj ( negating the theory that the case is TOO complicated, to abstract, for a jury to follow), this guy has to be very worried. Usually, he’d get a LONGER sentence that the first guy up..so I wonder if he’s likely to try and cut a deal, plead guilty, get a lesser sentence, and at Club Fed, but ONLY if he names names, gives the US attys info and testimony of lots more Wall St crooks.