Wall Street Scandal SEC accuses Ex- McKinsey Rajat Gupta for insider trading

The United States Securities and Exchange Commission (SEC) has accused Ex-Managing Partner of McKinsey Rajat Gupta, of committing insider trading. The SEC has accused Rajat Gupta of passing insider in

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BizDisrupt

May 18, 2011 - 11:36pm

It is actually extremely hard for me to believe that Nobody at McKinsey knew about Gupta's parallel consulting activity!!Specially when it was public news that Gupta set up a Private Equity fund with 3 corrupted(?) investors who paid fines to the SEC to settle with the latter.=> When will we have honest, righteous, and exemplary Executives managing companies??

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Georges

March 7, 2011 - 11:40am

Narayana and Susanna.... I am equally shocked at this news. But law has no place for such emotions and hero worship. It has to go by cold facts and evidence SEC is equally credible insitution, and would not charge any one lightly. Please see SEC complaint, its copy is easily availble on internet. It has cited 3 incidents spread over 4 to 5 months, and its case is supported by call reoords. There is no recording of coversations. There are precedent cases, where in such circumstances in civil adjudication, charges have been upheld. I am absolutely sure that similar to Victor Meznes, erstwhile Chairman of Citibank, Mr Gutpa would compromise with SEC. It also reminds me of recent case of SEBI against Anil Ambani companies. After obtaining consent order from SEBI, Anil Ambani went to town claiming that there was no adverse findings against his companies!!!!

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Susanna Kurian ...

March 6, 2011 - 3:40pm

I am shocked by this news that SEC charges Rajat Gupta of insider trading.If proved true, I would want to understand his motive......All the credibility he has earned has been lost with this foolish act.I can only rationalise , at the end of the day we all are ONLY human.

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narayana

March 6, 2011 - 9:09am

it is outrageous to suggest that a respected individual is being framed in a case like this.mr. gupta has earned enough money and enough respect in his career,he does'nt need to go for a few million dollars more by doing such cheap antiques.i think there might be another reason involved.

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georges

March 5, 2011 - 6:46pm

I have gone through the SEC order against Rajat Gupta. As it is a civil adjudication, there is enough material to nail down Mr Gupta. His claim that there is no recording of the phone conversation, is very weak defence. Pleas see Supreme Courts decision in Collector of Customs v/s D. Bhoormull (AIR 1974 SC 859)where it laid down no exact evidence is required. Even our own SEBI is using this case. Eventually Mr Gupta will settle with SEC, like many others previously, and then say there is no order holding him guilty. Very interestingly,another Indian victor menezes, erstwhile vice-chairman was also charged for insider trading by SEC in 2005. And he too settled with SEC.Above is only legalise. It is very sad to see that even after such vast experience in corporate life, people like Rajat Gupta and Victor Menzes, resort to these kind of illegalities to make money. It makes one wonder, whether they build there entire careers on such shady dealings???

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