Westport’s Rajat Gupta, the former Goldman Sachs Group director spending time at his Greens Farms home awaiting appeal of his insider trading conviction, today got more bad news – a $13.9 million civil fine. 
Rajat Gupta: another fine in case. File photo
Gupta, 64, who was found guilty of passing confidential tips to jailed billionaire hedge-fund manager Raj Rajaratnam, was also permanently barred from acting as an officer or director of a public company and from associating with any broker or investment adviser, the Securities and Exchange Commission said. It cited an order by U.S. District Judge Jed Rakoff in Manhattan.
Gupta is appealing his June 2012 conviction and two-year prison term and $5 million criminal fine for having fed confidential tips he learned at Goldman board meetings in the second half of 2008 to Rajaratnam, a former billionaire who ran Galleon Group.
“The sanctions imposed today send a clear message to board members who are entrusted with protecting the confidences of the companies they serve,” George Canellos, co-director of the SEC’s enforcement division, said in a statement.
In February, the same judge ordered Gupta to reimburse $6.22 million to his former employer to cover its legal expenses related to the case. (See WestportNow Feb. 25, 2013)
