Rajat Gupta leaves federal court with his lawyer Gary P. Naftalis, right, Wednesday, Oct. 26, 2011 in New York. The former board member of Goldman Sachs and Procter & Gamble pleaded not guilty to federal charges accusing him of acting as “the illegal eyes and ears in the boardroom” for a friend who was already convicted in the biggest insider trading case in history. (AP Photo/Frank Franklin II)
NEW YORK (AP) — A former board member of Goldman Sachs and Procter & Gamble pleaded not guilty Wednesday to federal charges accusing him of acting as “the illegal eyes and ears in the boardroom” for a friend, a billionaire hedge fund founder sentenced this month to 11 years in prison in the biggest insider trading case in history.
The case, built partially on wiretaps used for the first time in insider trading, has offered unprecedented insight into greed at the highest levels of Wall Street. The arrest of Rajat Gupta took it one step higher.
The indictment unsealed Wednesday accuses Gupta of cheating the markets with Raj Rajaratnam, the 54-year-old convicted hedge fund founder who was the probe’s prime target.
Gupta, 62, quietly surrendered early in the day at the FBI’s New York City office, a few blocks north of the ongoing Occupy Wall Street demonstration against what protesters call a culture of corporate greed. His lawyer called the allegations “totally baseless.”
Swarmed by photographers, Gupta left the courthouse shortly before 4 p.m.
Gupta, of Westport, Conn., pleaded not guilty to one count of conspiracy to commit securities fraud and five counts of securities fraud, charges that carry a potential penalty of 105 years in prison. He was freed on $10 million bail, and conditions require him to remain in the continental United States. An April 9 trial date was set.
The indictment in U.S. District Court in Manhattan Login to read more