Goldman To Get $6.2m For Being Victim Of Insider Trading

Rajat Gupta, the former Goldman Sachs director convicted of passing tips to his friend Raj Rajaratnam, was ordered to pay the bank more than $6.2m in restitution as a victim of his insider trading.

Bloomberg reports that Goldman argued that as a result of Gupta’s crimes, it was entitled to $6.9m in legal fees and other expenses it had spent during a federal probe of the bank by the Manhattan U.S. Attorney’s Office and the Federal Bureau of Investigation, as well as a parallel investigation by the U.S. Securities and Exchange Commission.

Gupta, 64, who sat on the board of New York-based Goldman Sachs and Cincinnati-based Procter & Gamble Co. (PG), was convicted in June of passing information he gathered at board meetings to Rajaratnam, his former business associate who was co-founder of the hedge fund Galleon Group LLC.

'Goldman Sachs has proved by a preponderance of the evidence that 90% of its tendered expenses were both necessary and incurred during its participating in the investigation and prosecution', U.S. District Judge Jed Rakoff, who presided over Gupta’s criminal trial, said in a ruling Monday.

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