June 15 - Rajat Gupta, a former Goldman Sachs board memeber, was found guilty of illegally passing tips to a hedge fund manager friend. Conway G. Gittens reports.
Former Goldman Sachs board member Rajat Gupta - found guilty of giving illegal tips - giving prosecutors another victory in a crackdown on Wall Street insider trading. Gupta, a high profile executive who also served as a director at Procter & Gamble, was convicted on three counts of securities fraud and one count of conspiracy, but got off on two other charges. His attorney, Gary Naftalis: SOUNDBITE: GARY NAFTALIS, RAJAT GUPTA'S ATTORNEY (ENGLISH) SAYING: "We are obviously disappointed by the conviction on other charges and those charges were the charges that were supported by the hearsay wiretaps of Mr. Rajaratnam, which we legally challenged and will continue to legally challenge. He was acquitted on counts where they were no hearsay wiretaps of Mr. Rajaratnam." His legal team tried to vigorously refute those wire taps, purporting to hear Gupta tipping off friend and now jailed hedge-fund manager Raj Rajaratnam, about billionaire investor Warren Buffett's plan to take a $5 billion stake in Goldman Sachs at the height of the financial crisis. Gupta now faces a maximum prison term of up to 25 years, although such a heavy punishment is unlikely. Conway Gittens, Reuters