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Ex-Goldman Sachs director guilty of insider trading

  • Rajat Gupta, a business insider who once sat on the board of Goldman Sachs, has been convicted of conspiracy and three counts of securities fraud.

    He was found guilty of four of six criminal counts and could face a prison term of up to 25 years.

    Gupta, who headed business consultancy McKinsey & Co for nine years, has been the most prominent defendant prosecuted so far in a series of probes into alleged insider trading in the hedge fund industry.

    Both his trial and that last year of former billionaire Raj Rajaratnam revealed how the two friends took advantage of the 2008 financial crisis.

    All of the counts Gupta was convicted of relate to tips and trades in Goldman stock in September and October 2008, including passing inside information on a $5 billion investment by Warren Buffett's Berkshire Hathaway.