Rajat Gupta, the former Goldman Sachs Group Inc. (GS) director charged with insider trading as part of the Galleon Group LLC probe, filed a demand for a jury trial in the civil case brought against him by the U.S. Securities and Exchange Commission.
The SEC claims Gupta, 63, gave Raj Rajaratnam, the convicted Galleon co-founder, information about Berkshire Hathaway Inc. (BRK/A)’s $5 billion investment in Goldman Sachs. The agency also alleges that Gupta told Rajaratnam about quarterly earnings of Goldman Sachs and Procter & Gamble, where Gupta was also a director.
Gupta, who faces related criminal charges in a separate case, has denied wrongdoing.
The SEC filed an administrative proceeding against Gupta in Washington on March 1, claiming he passed illegal inside information to Rajaratnam. The agency later withdrew that action and sued Gupta in federal court in Manhattan, after Gupta claimed the administrative proceeding improperly deprived him of procedural protections, including the right to have a jury, rather than a judge, determine the case.
Rajaratnam, 54, was found guilty in May of 14 criminal counts of conspiracy and securities fraud. He is serving an 11- year sentence in a federal medical prison in Massachusetts.
The case is Gupta v. SEC, 11-cv-01900, U.S. District Court, Southern District of New York (Manhattan).
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