Buffett’s Goldman Investment Was Leaked by Gupta, SEC Says
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Warren Buffett’s decision to invest in Goldman Sachs Group Inc. during the financial crisis was leaked to a hedge fund by Rajat K. Gupta, who was then on the bank’s board, U.S. regulators said.
Gupta alerted hedge-fund manager Raj Rajaratnam to Buffett’s $5 billion investment in the company before the deal was made public in September 2008, the Securities and Exchange Commission said in an administrative order today. Rajaratnam’s Galleon Group made more than $18 million on that tip and other insider information from Gupta, the SEC said.