NEW YORK: Former McKinsey managing director and Goldman Sachs board member Rajat Gupta on Wednesday was ordered to pay $13.9 million in penalty for his role in insider trading, the US Securities and Exchange Commission announced.
Gupta, who was jailed last year for two years for passing on Goldman Sachs boardroom secrets to former Galleon hedge fund tycoon Raj Rajaratnam, is free on bail after he challenged his conviction.
Ordering Gupta to pay the penalty on Wednesday, US Judge Jed Rakoff also barred him from acting as an officer or director of a public company and from associating with any broker, dealer or investment advisor, according to a statement by the Securities and Exchange Commission (SEC).
One of the most successful Indian immigrants, Gupta was nailed for passing on the boardroom discussion about Berkshire Hathaway’s decision to invest $5 billion in Goldman Sachs in 2008 to his friend and partner Rajaratnam. Rajaratnam is jail.
Gupta is an alumnus of IIT Delhi.