Rajat Gupta, Former Goldman Sachs Director, Expected To Face Criminal Charges: Source

Former Goldman Sachs director Rajat Gupta will surrender to the FBI on Wednesday to face criminal charges, a person familiar with the investigation said.

Gupta was named as an unindicted co-conspirator in hedge fund founder Raj Rajaratnam's trial earlier this year. He has denied wrongdoing.

Rajaratnam was sentenced to 11-years in prison this month. Gupta's attorney, Gary Naftalis, did not immediately respond to a call seeking comment.

(Reporting by Basil Katz)

Copyright 2011 Thomson Reuters. Click for Restrictions.

Comments

[FinanciallyRegulated]

01:30 AM on 10/29/2011

Interesting case, given the lack of direct evidence of benefit (so far anyway). Not as compelling as Mr. Scammel's 2-month return of 3500% after allegedly lifting the name of Disney's acquisition target (Marvel Comics) from his girlfriend's blackberry when she was working on the acquisition (this story is told with some humor, here: http://wp.me/p1PsM6-1p). Gupta's case will be interesting to follow.

[LamAng]

12:49 PM on 10/26/2011

I call this a good start! Raj Rajaratnam, Gupta....when will I see Blankfein, Cohn...you know the real players! Are they just sacrificing the color ones.

[ugotabkidnme]

10:18 AM on 10/26/2011

What do you call one arrested hedge fund manager? A beginning.

[lkamer56]

02:47 PM on 10/26/2011

you call them dem bundlers.com

[krazzicraig]

09:58 AM on 10/26/2011

In 2012 I would vote for Mickey Mouse if he get rid of the ex-Goldam/Sachs folks in washington. Then but them in jail.

[krazzicraig]

09:54 AM on 10/26/2011

There is a cancer in the whtehouse and the treasury . It is former employees of Goldman/Sachs . Why thes people are still in washington and not in jail is amazing.

[Jaczar]

09:05 AM on 10/26/2011

The entire financial community should be investigated and prosecuted for trashing the economy. But then our wonderful representatives would lose their cash cow for re-election. No doubt about it, we have the best government money can buy.

[carolineeaton]

08:52 AM on 10/26/2011

What happened to all the conservatives? Not so self-righteous now, are you?

[lkamer56]

02:45 PM on 10/26/2011

University of California $1,648,685
Goldman Sachs $1,013,091
Harvard University $878,164
Microsoft Corp $852,167
Google Inc $814,540
JPMorgan Chase & Co $808,799
Citigroup Inc $736,771
Time Warner $624,618
Sidley Austin LLP $600,298
Stanford University $595,716
National Amusements Inc $563,798
WilmerHale LLP $550,668
Columbia University $547,852
Skadden, Arps et al $543,539
UBS AG $532,674
IBM Corp $532,372
General Electric $529,855
US Government $513,308
Morgan Stanley $512,232
Latham
Open secrets list of top corp bundlers for Obama in 2008. NOTICE NUMBER 2 ON THAT LIST...GOLDMAN SACHS. These two were the creme de la creme for bundling money for the dems while workin there. The WH is packed with GS employees. How much of the money went to dem candidates?

[dave dbo]

08:51 AM on 10/26/2011

The real reason Rajaratnam was jailed for that long was because the man supported terrorism, not merely because he took part in insider trading.

[krazzicraig]

08:51 AM on 10/26/2011

These folks manipulated the system for their own gain . They stole billions while working for the goverment . Not one of these folks are in jail . WHY.

[glyngcgb]

08:49 AM on 10/26/2011

Bring back Alcatraz for these folks. Don't send them to the Federal Prison in Atlanta where there is nothing to do but play golf on a championship quality course everyday. That's cruel..., send them to Alcatraz where they have a view of the Bay. Let them spend their days battling rats and mold.

[krazzicraig]

08:48 AM on 10/26/2011

Regulators:

Current New York Fed President William Dudley is a Goldman man

Current Commodity Futures Trading Commission Chairman Gary Gensler has been a responsible regulator under Obama, but he was a deregulatory hawk during the Clinton years, and worked at Goldman for nearly two decades before that.

A top aide to Timothy Geithner, Gene Sperling, is a Goldman man

Current Treasury Undersecretary Robert Hormats is a Goldman man

Current Treasury Chief of Staff Mark Patterson is a former Goldman lobbyist

Former SEC Chairman Arthur Levitt is now a Goldman adviser

Neel Kashkari, Henry Paulson's deputy on TARP, was a Goldman man

COO of the SEC Enforcement Division Adam Storch is a Goldman man

Congress:

Former Sen. John Corzine, D-N.J., was Goldman's CEO before Henry Paulson

Rep. Jim Himes, D-Conn., was a Goldman Vice President before he ran for Congress

Former House Minority Leader Dick Gephardt, D-Mo., now lobbies for Goldman

And the list goes on.

[krazzicraig]

08:48 AM on 10/26/2011

Goldman Sachs

No company exemplifies the revolving door between Wall Street and Washington more than Goldman Sachs. The four people on this list are some of the worst offenders, but Goldman's D.C. army has includes many other top officials in this administration and the last.

White House:

Joshua Bolton, chief of staff for George W. Bush, was a Goldman man

[krazzicraig]

08:48 AM on 10/26/2011

Warren Buffett

Warren Buffett used to be a reasonable guy, blasting the rich for waging "class warfare" against the rest of us and deriding derivatives as "financial weapons of mass destruction." These days, he's just another financier crony, lobbying Congress against Wall Street reform, and demanding a light touch on—get this—derivatives! Buffet even went so far as to buy the support of Sen. Ben Nelson, D-Nebraska, for a filibuster on reform. Buffett has also been an outspoken defender of Goldman Sachs against the recent SEC fraud allegations, allegations that stem from fancy products called "synthetic collateralized debt obligations"—the financial weapons of mass destruction Buffett once criticized.

See, it just so happens that both Buffet's reputation and his bottom line are tied to an investment he made in Goldman Sachs in 2008, when he put $10 billion of his money into the bank. Buffett has acknowledged that he only made the deal because he believed Goldman would be bailed out by the U.S. government. Which, in fact, turned out to be the case, multiple times. When the government rescued AIG, the $12.9 billion it funneled to Goldman was to cover derivatives bets Goldman had placed with the mega-insurer. Buffett was right about derivatives—they are WMD so far as the real economy is concerned. But they've enabled Warren Buffett to get even richer with taxpayer help, and now he's fighting to make sure we don't shut down his own casino.

10. Goldman Sachs

[krazzicraig]

08:47 AM on 10/26/2011

Henry Paulson

His time at Goldman Sachs made Henry Paulson one of the richest men in the world. Under Paulson's leadership, Goldman transformed from a private company ruled by client relationships into a public company operating as a giant global casino. As Treasury Secretary during the height of the financial crisis, Paulson personally approved a direct $10 billion capital injection into his former firm.

But even before that bailout, Paulson had been playing fast and loose with ethics rules. In June 2008, Paulson held a secret meeting in Moscow with Goldman's board of directors, where they discussed economic prognostications, market conditions and Treasury rescue plans. Not okay, Hank.

[krazzicraig]

08:47 AM on 10/26/2011

Robert Steel

Like better-known corruptocrats Robert Rubin and Henry Paulson, Steel joined the Treasury after spending several years as a top executive with Goldman Sachs. Steel joined the Treasury in 2006 as Under Secretary for Domestic Finance, and proceeded to do, well, nothing much until financial markets went into free-fall in 2008. When Wachovia ousted CEO Ken Thompson, the company named Steel as its new CEO. Steel promptly bought one million Wachovia shares to demonstrate his commitment to the firm, but by September, Wachovia was in dire straits. The FDIC wanted to put the company through receivership—shutting it down and wiping out its shareholders.

But Steel's buddies at Treasury and the Fed intervened, and instead of closing Wachovia, they arranged a merger with Wells Fargo at $7 a share—saving Steel himself $7 million. He now serves on Wells Fargo's board of directors.