Former McKinsey & Company Managing Director and Goldman Sachs board member Rajat Gupta has been accused by federal regulators of revealing inside information about Goldman to a hedge fund manager, according to multiple published reports.
Gupta, who joined a number of corporate boards and started his own investment fund after retiring from McKinsey in 2007, is accused of passing along non-public information to Raj Rajaratnam, the former head of the Galleon Group hedge funds. Rajaratnam is set to go on trial for insider trading next week.
The Gupta accusation certainly is not welcome news at McKinsey, which already was connected to Rajaratnam case. Another McKinsey director, Anil Kumar, was arrested as part of the SEC investigation in 2009. McKinsey couldn't be reached for comment.
The SEC alleges that Gupta provided inside information about Warren Buffett's $5 Billion investment in Goldman, as well as details about Procter & Gamble, where he was on the board. Gupta resigned from the P&G board this week and the Goldman board last May.
Gupta's lawyer, meanwhile, calls the charges "totally baseless."
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