Feds Set to Charge Ex-Goldman Exec

Rajat Gupta at the 2010 annual meeting of the World Economis Forum in Davos, Switzerland on Jan. 28, 2010. (Photo: Sebastian Derungs)

Misery loves company. In what would be the second largest arrest on Wall Street this year, federal prosecutors are expected to file criminal charges against Rajat K. Gupta for insider trading. The former director of Goldman Sachs and Procter & Gamble and current head of McKinsey & Company, Gupta has been under investigation for leaking corporate secrets to Raj Rajaratnam, the Galleon Group hedge-fund manager who was recently sentenced to 11 years in prison for illegal trading. The case against Gupta would provide a chance to tie up a major loose end in the investigation into Rajaratnam’s hedge fund. In a Newsweek exclusive, Rajaratnam spoke about how he was betrayed.