Federal prosecutors today expanded their insider trading case against Westporter Rajat Gupta, a former Goldman Sachs Group Inc. director, saying the illegal activity lasted longer and involved more trades than alleged.
Rajat Gupta: new allegations made. File photo
A new indictment filed in Manhattan federal court expanded the period in which Gupta, 63, supposedly provided illegal tips to his friend Raj Rajaratnam, the Galleon Group hedge fund founder now serving an 11-year prison term following his insider trading conviction.
The charges now relate to trades that prosecutors said Rajaratnam made between March 2007 and January 2009 in the stock of Goldman and Procter & Gamble Co., where Gupta was also a director.
Gupta, a former chief of the consulting firm McKinsey & Co., is the most prominent corporate executive to face insider trading charges in a wide-ranging federal probe since Rajaratnam was arrested in October 2009. He has pleaded not guilty.