UPDATE Federal prosecutors today charged Westporter Rajat Gupta with conspiracy and securities fraud hours after he left his Beachside Avenue home at 6:15 a.m. and surrendered to FBI agents –- the highest ranking executive to be arrested in a four-year securities-fraud investigation of insider trading at hedge funds.![]()
Rajat Gupta: in FBI custody. File photo
Gupta, 62, a former Goldman Sachs Group Inc. director who gave himself up to FBI agents in Manhattan at 8:15 a.m., was accused of feeding inside information to Galleon Group LLC hedge fund manager Raj Rajaratnam.
He was charged with five counts of securities fraud and one count of conspiracy to commit securities fraud in an indictment unsealed in Manhattan federal court. The U.S. Securities and Exchange Commission also sued Gupta today.
Gupta’s case once again brought the media insider trading spotlight to Westport where former resident Martha Stewart lived in 2004 when charged with obstruction of justice. She served a five-month prison sentence after being convicted on charges she lied about her sale of ImClone Systems stock before damaging information about the biotech firm became public.




