Prosecutors up charges against Goldman’s Gupta
CHARGES against former Goldman Sachs director Rajat Gupta have been expanded by US prosecutors, who have doubled to four the number of illicit tips Gupta allegedly passed to hedge-fund manager Raj Rajaratnam.
They also increased the length of Gupta’s illegal dealings, claiming they began in March 2007 rather than the previously stated 2008.
This could lengthen Gupta’s sentence if he is found guilty.
Originally charged in October for conspiracy and fraud regarding insider information he gained as a director of Goldman Sachs and Procter & Gamble, prosecutors are now also accusing Gupta of tipping off Rajaratnam ahead of Goldman’s 2007 first quarter earnings.
Rajaratnam, who co-founded Galleon Group, was sentenced last May to 11 years in jail on evidence from wiretap recordings.
Gupta’s lawyer Gary Naftalis called the charges “totally baseless”, adding: “The newly added charges – like the ones brought last year – are not based on any direct evidence, but rely on supposed circumstantial evidence.”