Federal authorities ordered a former executive of Goldman Sachs Group Inc. to pay US $13.9 million after he was found guilty of insider trading filed by the Securities and Exchange Commission.
Rajat Gupta, also the former head of McKinsey & Co., was also prohibited from accepting directorship of a publicly listed company.
Gupta was found guilty of sharing corporate secret to his business associated Raj Rajaratnam, a manager of a hedge fund company. He was sentenced to two years and is currently on bail while awaiting the ruling from the appellate court.
His friend Rajaratnam, meanwhile, is presently serving the 11 year sentence handed to them by a Manhattan court for conspiracy and securities fraud. He was also ordered to pay US $92.8 million in penalty, considered to be the largest ever amount in a SEC civil lawsuit.
George S. Canellos, co-director of SEC's Division of Enforcement, said the order sends a "clear message" to board members to protect corporate information entrusted to them.
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