NEW YORK - Washington's broadest-ever fight against insider trading Wednesday snared its most prominent business executive: Rajat Gupta, a former Goldman Sachs director and former head of consulting giant McKinsey & Co.
Gupta pleaded not guilty during a Manhattan arraignment before U.S. District Court Judge Jed Rakoff on one count of conspiracy and five counts of security fraud.
The 62-year-old Westport, Conn., resident, who had surrendered earlier to FBI agents, was released on a $10 million personal recognizance bond secured by the equity in his home. He was required to surrender his passport and limit any travel to the U.S. pending a trial tentatively set for April 9.
The charges are the latest from prosecutors' unprecedented use of secret wiretaps to combat insider trading. The case stems from Gupta's long personal and business relationship with Raj Rajaratnam, the former Galleon Management hedge fund founder who was sentenced to 11 years in prison Oct. 13 after conviction as the central figure in a sprawling, multi-million dollar insider trading scheme.
How can you fault the Obama admin and his DOJ for FINALLY someone going after these pigs at the trough...who make hundreds of millions and its still not enough for them...they have to rob and steal and cheat....throw the key away
Bail set at $10M for ex-Goldman director in securities fraud