SEC Targets Ex-Goldman Director In Galleon Case

Law360, New York (March 1, 2011, 3:17 PM EST) -- Federal regulators Tuesday accused a former Goldman Sachs Group Inc. director of fraud as part of the government's sprawling insider trading case against hedge fund manager Raj Rajaratnam.

The U.S. Securities and Exchange Commission issued a cease-and-desist order against Rajat Gupta, who is accused of passing along to Rajaratnam important inside information about a $5 billion Berkshire Hathaway Inc. investment in Goldman before the deal was made public in September 2008.

The SEC also accused Gupta in the administrative proceeding of disclosing information about Goldman's quarterly...
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