Friday, Sep 17, 2021
Outlook.com

On Corporate Secret Service

A posterboy for Indian Americans, Rajat Gupta is charged with financial misdeeds

On Corporate Secret Service
AP
On Corporate Secret Service
outlookindia.com
-0001-11-30T00:00:00+05:53

What The Scam Is About

  • Rajat Gupta is accused of passing information about Warren Buffet’s $ 5 billion investment in Goldman Sachs to Galleon Group’s Raj Rajaratnam, who used them to make a killing in the stockmarket
  • Also, on June 10, 2008 Goldman CEO tells board of firm’s improved earnings
  • Flurry of calls between Gupta and Rajaratnam; latter buys 350,000 Goldman shares 
  • Six days later, Goldman announces quarterly earnings
  • Rajaratnam sells shares, earns illicit profits of $ 13.6 million

***

When former India captain Mohammed Azharuddin was accused of fixing matches, there were many who gasped in disbelief: “Why did he have to fix matches? He was already so rich, so successful.” These are precisely the questions the Indian community in the US are asking of Rajat Gupta, who has been accused of passing confidential tips to Galleon Group’s billionaire hedge fund...

Advertisement

Outlook Newsletters

Read More from Outlook

India's Jaishankar Attends SCO, Discussions Revolved Around Taliban

India's Jaishankar Attends SCO, Discussions Revolved Around Taliban

External Affairs Minister S. Jaishankar attended the Shanghai Cooperation Organisation in person and also met with his counterparts to discuss bilateral developments. Prime Minister Modi to virtually participate today.

FM Sitharaman Announced Setting Up Of National Asset Reconstruction Company

FM Sitharaman Announced Setting Up Of National Asset Reconstruction Company

Finance Minister Nirmala Sitharaman on September 16 announced that the Cabinet has approved a central government guarantee of up to Rs 30,600 crore to back security receipts to be issued by National Asset Reconstruction Company Limited (NARCL). The guarantee would be valid for a period of five years. Asset reconstruction companies (ARCs) generally buy distressed assets with a 15 per cent cash payment and 85 per cent in security receipts.

Sunil Mittal Aspires To Keep The Telecom Industry Together; Spoke To Vodafone-Idea Chief About Telecom Reforms

Sunil Mittal Aspires To Keep The Telecom Industry Together; Spoke To Vodafone-Idea Chief About Telecom Reforms

He urged the industry to work together in areas such as infrastructure but said he was strictly opposed to any cartelisation.

Who After Virat Kohli? Sunil Gavaskar Backs KL Rahul For T20 Captaincy

Who After Virat Kohli? Sunil Gavaskar Backs KL Rahul For T20 Captaincy

Gavaskar's comments come in after Virat Kohli announced that he would be stepping down from India's T20 captaincy after the mini World Cup next month.

Advertisement