Skip to comments.Directors Behaving Badly: Rajat Gupta Faces Criminal Insider Trading Charges
Posted on 10/26/2011 10:20:55 AM PDT by bkopto
Rajat K. Gupta, a former Goldman Sachs, Procter & Gamble, and American Airlines director and retired McKinsey & Company managing director, surrendered to the Federal Bureau of Investigation on Wednesday morning, according to The New York Times, to face criminal charges of insider trading.
Gupta, as a McKinsey veteran, embodied the trusted advisor consulting ethos and personified the McKinsey advisor to CEOs business strategy and brand. McKinseys value to its clients and its effectiveness as an advisor requires knowing their secrets and holding them close to the vest.
Guptas name first came up in connection with the charges against now convicted and sentenced Galleon hedge fund founder Raj Rajaratnam. Several media commentators wondered whether the accusations against Gupta, and earlier accusations in the same scandal against McKinsey senior partner and Gupta protégé Anil Kumar, would take down McKinsey.
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After the gov’t BIG win, and stiff sentence, against Raj, I look for this clownm to try and cut a deal, cop a plea, and get a lesser sentence, but ONLY if he names names, provides the inside track to others who are as dirty...could be very interesting..
One down, many to go. When they perp walk the Goldman Sachs guys, you will know we are finally holding Wall St. accountable for their misbehavior. Holding people accountable and making them suffer the consequences of their greed and stupidity will have more impact than any piling on of more regulations on fixing the problems on Wall St.