US authorities are said to be close to prosecuting Rajat Gupta, former Goldman Sachs director and founder of the Indian School of Business, in connection with the Raj Rajaratnam insider trading case, according to a report.
Though a final decision has not yet been taken, The Wall Street Journal said, citing sources, that federal prosecutors are closer to bringing criminal charges against Gupta.
Gupta’s lawyer Gary Naftalis termed the charges as baseless. “There has never been any allegation that Gupta traded in any securities. In fact, he lost his entire $10 million investment in the GB Voyager Fund managed by Rajaratnam.”
Rajaratnam, owner of Galleon Management, and six others were charged by the US Securities and Exchange Commission for insider trading worth $25 million. All of them were found guilty, and are awaiting sentencing.