Goldman To Get $6.2m For Being Victim Of Insider Trading

Gavel

Rajat Gupta, the former Goldman Sachs director convicted of passing tips to his friend Raj Rajaratnam, was ordered to pay the bank more than $6.2m in restitution as a victim of his insider trading.

Bloomberg reports that Goldman argued that as a result of Gupta’s crimes, it was entitled to $6.9m in legal fees and other expenses it had spent during a federal probe of the bank by the Manhattan U.S. Attorney’s Office and the Federal Bureau of Investigation, as well as a parallel investigation by the U.S. Securities and Exchange Commission.

Gupta, 64, who sat on the board of New York-based Goldman Sachs and Cincinnati-based Procter & Gamble Co. (PG), was convicted in June of passing information he gathered at board meetings to Rajaratnam, his former business associate who was co-founder of the hedge fund Galleon Group LLC.

'Goldman Sachs has proved by a preponderance of the evidence that 90% of its tendered expenses were both necessary and incurred during its participating in the investigation and prosecution', U.S. District Judge Jed Rakoff, who presided over Gupta’s criminal trial, said in a ruling Monday.

Hit the link below to access the complete Bloomberg article:

Gupta Must Pay Goldman $6.2 Mln for Fees Spent in Probe

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