Tag Archives: Rajat K. Gupta

AMR Board Member Charged by SEC With Insider Trading

The Securities and Exchange Commission today charged Rajat Gupta, former head of McKinsey and Co., and former Goldman Sachs board member, with insider trading. The charges were filed in a civil administrative proceeding filed by the SEC’s Division of Enforcement.

What does this have to do with airlines? Gupta is a member of the AMR Board of Directors. AMR is the parent of American Airlines.

After the news broke today, Gupta voluntarily resigned from the Proctor and Gamble BOD.

According to the complaint, Gupta provided insider knowledge to Galleon Group founder Raj Rajaratnam “about companies in which he was a board member,” according to the Wall Street Journal.

The Journal says that specifically mentioned in the complaint are tips Gupta provided about upcoming earnings results for Proctor and Gamble and Goldman Sachs. He is also accused of also tipping off Raj Rajaratnam about a $5 billion investment in Goldman by Warren Buffett’s Berkshire Hathaway company.