Galleon Group

Former Goldman Sachs director Rajat K. Gupta was arrested by FBI agents in New York on charges that he leaked corporate secrets to a hedge fund manager, making him the highest-ranking corporate executive implicated in the government's long-running crackdown on insider trading. Gupta, who was also a director of Procter & Gamble, is accused of supplying inside information about both companies to Galleon Group hedge fund founder Raj Rajaratnam, who used the information to make illegal, profitable trades and avoid millions of dollars of losses, prosecutors said.

NEW YORK -- The brother of one of Wall Street's most notorious crooks has been accused of insider trading himself. Federal authorities on Thursday accused Rajarengan, or "Rengan," Rajaratnam, whose older brother Raj was convicted in 2011 of running a vast network of illicit information-sharing on Wall Street, of engaging in the same cheating in financial markets. "As alleged, Rengan Rajaratnam and his brother shared more than DNA, they also shared a penchant for insider trading," Preet Bharara, the U.S. attorney in Manhattan, said in a statement.

Prosecutors probing insider trading in the medical devices industry are investigating a senior Goldman Sachs banker and a former employee of the notorious hedge fund Galleon Group. The investigation, according to a person briefed on the matter, is focused on the 2009 takeover of Advanced Medical Optics in Santa Ana. The U.S. attorney's office in Los Angeles has been scrutinizing the ties between Goldman managing partner Matthew Korenberg, who worked on the Advanced Medical Optics deal, and Paul Yook, a former portfolio manager at Galleon, the person said.

NEW YORK - Former Goldman Sachs director Rajat Gupta will spend two years behind bars for sharing secret company information with a hedge fund manager, becoming the highest-profile Wall Street figure heading to prison for insider trading. Gupta once headed the prestigious consulting firm McKinsey & Co. and also served as a director to Procter & Gamble. His philanthropy around the globe has also been stunning, as Microsoft co-founder Bill Gates, former United Nations secretary general Kofi Annan and scores of others told the court in letters.

A criminal trial starting this week is shaping up as a classic story of hedge funds gone bad, but the topic ? stock trading ? no longer typifies the increasingly risky investments of the fast-evolving hedge-fund world. The case against Raj Rajaratnam, founder of Galleon Group, promises the staples ? major companies, prestigious executives, incriminating wiretaps, informants and secret phone calls providing hot tips on stocks. Although this story may resonate with the public's perception of what hedge funds do, it is at odds with the complex and high-tech direction hedge funds have been headed for the last two decades.

The hedge-fund firm at the center of the biggest insider-trading scandal to erupt on Wall Street in years is taking steps to close up shop. Galleon Group, founded by billionaire Raj Rajaratnam, who was arrested last week on suspicion of running a widespread insider-trading scheme, told investors and employees in a letter Wednesday that it planned to liquidate its hedge funds. The company also has been approached by outside parties interested in buying it, according to a person familiar with the matter.

Hector Ruiz, former chief executive of chip maker Advanced Micro Devices Inc., is leaving his job with a spinoff company after a published report linking him to the Galleon Group insider trading case. GlobalFoundries Inc., also a chip manufacturer, says Ruiz will take a voluntary leave from his position as chairman before officially resigning Jan. 4. The Wall Street Journal reported last week that Ruiz was the executive fingered by the U.S. attorney's office in Manhattan for leaking insider information to Danielle Chiesi, one of six people arrested in the Galleon case.

A jury has convicted former Goldman Sachs director Rajat Gupta in his high-profile insider-trading case in New York. A federal jury had been weighing Gupta's fate for two days. The jury of eight women and four men found Gupta guilty of four criminal counts in a wide government push against insider trading. Gupta was found guilty of three counts of securities fraud and one count of conspiracy for leaking stock tips to Raj Rajaratnam, head of the Galleon Group hedge fund. He was acquitted on two counts of securities fraud.

NEW YORK — The federal government took down the biggest Wall Streeter yet in its battle against insider trading: Rajat Gupta, a former director of Goldman Sachs who once headed powerful consulting firm McKinsey & Co. Gupta's conviction on securities fraud and conspiracy charges in federal court in Manhattan on Friday may embolden government efforts to weed out white-collar corruption using wiretaps, tools traditionally used against mobsters and...

NEW YORK -- The brother of one of Wall Street's most notorious crooks has been accused of insider trading himself. Federal authorities on Thursday accused Rajarengan, or "Rengan," Rajaratnam, whose older brother Raj was convicted in 2011 of running a vast network of illicit information-sharing on Wall Street, of engaging in the same cheating in financial markets. "As alleged, Rengan Rajaratnam and his brother shared more than DNA, they also shared a penchant for insider trading," Preet Bharara, the U.S. attorney in Manhattan, said in a statement.

NEW YORK -- Rajat Gupta, among the world's most prominent businessmen, may spend years in prison for his role in the Galleon Group insider-trading scheme. Or, Gupta may perform community service as punishment after a judge sentences him Wednesday on three counts of securities fraud and another of conspiracy. A jury convicted him in June. His lawyers have proposed sentencing him to work for a homeless youth shelter in New York or in Rwanda, helping improve health care and develop agriculture in rural areas.

NEW YORK — The federal government took down the biggest Wall Streeter yet in its battle against insider trading: Rajat Gupta, a former director of Goldman Sachs who once headed powerful consulting firm McKinsey & Co. Gupta's conviction on securities fraud and conspiracy charges in federal court in Manhattan on Friday may embolden government efforts to weed out white-collar corruption using wiretaps, tools traditionally used against mobsters and...

A jury has convicted former Goldman Sachs director Rajat Gupta in his high-profile insider-trading case in New York. A federal jury had been weighing Gupta's fate for two days. The jury of eight women and four men found Gupta guilty of four criminal counts in a wide government push against insider trading. Gupta was found guilty of three counts of securities fraud and one count of conspiracy for leaking stock tips to Raj Rajaratnam, head of the Galleon Group hedge fund. He was acquitted on two counts of securities fraud.

Rajat Gupta, a formerGoldman Sachs Group Inc.board member accused of insider trading, won't testify this week in his own defense, his lawyer said. Gupta's chief lawyer, Gary Naftalis, said in a letter Sunday to the federal court in New York that his client won't take the stand after saying earlier that it was "highly likely. " Gupta has pleaded not guilty, and his lawyers say the government's case is speculative. Federal prosecutors rested their case Friday. Gupta faces as long as 25 years in prison if convicted on charges of securities fraud and conspiracy.

The highest-profile trial underway in New York may soon see testimony from a marquee witness: Lloyd Blankfein, chairman and chief executive of the powerful investment bank Goldman Sachs. Blankfein could testify as early as Monday in the insider-trading trial of former Goldman director Rajat Gupta, who is accused of illegally passing secret company information to hedge fund manager Raj Rajaratnam. Rajaratnam, who ran a vast insider-trading network as head of the Galleon Group, was sentenced to 11 years in prison following his own trial last year.

NEW YORK Shortly after Goldman Sachs Group Inc.'s board learned of famed investor Warren Buffett's $5-billion lifeline at the height of the financial crisis, then-director Rajat Gupta phoned hedge-fund manager Raj Rajaratnam. Rajaratnam, a federal prosecutor said Monday, then used that information when he snapped up Goldman stock before the deal was announced in September 2008. Prosecutors said Gupta helped Rajaratnam make $1 million in just six minutes with the help of illegal inside information.

NEW YORK - Former Goldman Sachs director Rajat Gupta will spend two years behind bars for sharing secret company information with a hedge fund manager, becoming the highest-profile Wall Street figure heading to prison for insider trading. Gupta once headed the prestigious consulting firm McKinsey & Co. and also served as a director to Procter & Gamble. His philanthropy around the globe has also been stunning, as Microsoft co-founder Bill Gates, former United Nations secretary general Kofi Annan and scores of others told the court in letters.

Prosecutors probing insider trading in the medical devices industry are investigating a senior Goldman Sachs banker and a former employee of the notorious hedge fund Galleon Group. The investigation, according to a person briefed on the matter, is focused on the 2009 takeover of Advanced Medical Optics in Santa Ana. The U.S. attorney's office in Los Angeles has been scrutinizing the ties between Goldman managing partner Matthew Korenberg, who worked on the Advanced Medical Optics deal, and Paul Yook, a former portfolio manager at Galleon, the person said.