Major Obama donor, Rajat Gupta, convicted of insider trading

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    Jun 16, 2012 5:58 AM GMT
    Funny how the Administration hasn't pursued Corzine... but then he's also a major political fundraiser for the Democrats...

    For Gupta's political donations:,0,2955972.story

    The federal government took down the biggest Wall Streeter yet in its battle against insider trading: Rajat Gupta, a former director of Goldman Sachs who once headed powerful consulting firm McKinsey & Co.

    Gupta's conviction on securities fraud and conspiracy charges in federal court in Manhattan on Friday may embolden government efforts to weed out white-collar corruption using wiretaps, tools traditionally used against mobsters and gangsters.

    "It's a cat-and-mouse game," said Michael Weinstein, a former federal prosecutor who represents clients facing white-collar investigations. "This is just the latest example of the feds being one step ahead."

    Federal prosecutors in Manhattan have scored 62 convictions in the 68 insider-trading cases since 2009, following a sweeping FBI investigation into illicit information trafficking called Perfect Hedge. The FBI has even enlisted actor Michael Douglas, who played the fictional crooked financier Gordon Gekko in the 1980s movie "Wall Street," to star in a commercial aimed at deterring insider trader.

    The onslaught has rocked financial centers of power in Manhattan in recent years. U.S. Atty. Preet Bharara has called trading on nonpublic inside information "rampant" on Wall Street.

    "Having fallen from respected insider to convicted inside trader, Mr. Gupta has now exchanged the lofty boardroom for the prospect of a lowly jail cell," Bharara said.

    His conviction is likely to resonate beyond just hedge funds, given his prominence in the corporate world, said Jonathan New, a former federal prosector now in private practice in New York.
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    Jun 16, 2012 1:25 PM GMT
    riddler78 saidnothing of substance
    你瘋了 Nǐ fēng le