WASHINGTON (AP) -- Federal regulators have charged a former Goldman Sachs board member with insider trading, saying he provided confidential information to the central figure in a major hedge fund probe.
The Securities and Exchange Commission announced the civil charges against Rajat Gupta on Tuesday. The agency said Gupta gave Raj Rajaratnam, the founder of the Galleon Group hedge fund, confidential information about quarterly earnings of Goldman and Proctor & Gamble, where he is currently a board member. The SEC said he also provided confidential information about Berkshire Hathaway's planned $5 billion investment in Goldman to Rajaratnam.
Rajaratnam used the information from Gupta to illegally profit in hedge fund trades, the SEC said. Rajaratnam has pleaded not guilty to criminal charges in the insider-trading case.
At the time he passed the information to Rajaratnam, Gupta was an investor in some of the Galleon hedge funds and had other business interests with Rajaratnam that were potentially lucrative, the SEC said.
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