SEC sues Rajat Gupta, a very big fish, for insider trading

Gupta is a Goldman board member and former CEO of major corporate consulting firm McKinsey. By all accounts, they have him nailed.

In September 2008, Gupta disconnected from a Board conference call, in which he learned about the Buffet deal [to invest in Goldman], at 3:56 p.m. By 3:57, he was on the phone with Rajaratnam [of Galleon, who has been indicted on criminal charges] who in turn waited less than a minute to buy 175,000 additional shares in Goldman.

Taibbi thinks the SEC is after much bigger game and will lean on Gupta until he squeals. I agree. But why no criminal charges against him? (Unless that’s part of their ploy, threatening him with criminal indictment unless he cooperates)

The high levels of Wall Street appear to be little more than a den of thieves.


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