U.S. Prosecutors ‘Close to Charging’ Rajat Gupta, WSJ Reports
U.S. prosecutors are close to bringing criminal charges against former Goldman Sachs Group Inc. (GS) executive Rajat Gupta for allegedly leaking information, the Wall Street Journal reported, citing people familiar with the situation.
Gupta’s lawyer, Gary Naftalis, said allegations against him were “totally baseless,” the newspaper reported.
The Securities and Exchange Commission dropped a civil administrative proceeding against Gupta but was “fully committed” to refiling charges in a federal court; the SEC would now wait for any criminal charges from the Justice Department, the WSJ added.
Prosecutors referred to him as a “co-conspirator” during the case against Galleon Group co-founder Raj Rajaratnam, who was found guilty of conspiracy and insider trading in May and is due to be sentenced next week, the Journal said.
To contact the editor responsible for this story: Chris Peterson at cpeterson@bloomberg.net
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