The SEC obtained a $13.9
million penalty against a former Goldman Sachs board member for illegally
tipping corporate secrets to a former hedge fund manager. The board
member also is permanently barred from serving as an officer or director of a
public company.
The SEC
previously obtained a record $92.8 million penalty against the hedge fund manager for
prior insider trading charges.
“The sanctions imposed today
send a clear message to board members who are entrusted with protecting the
confidences of the companies they serve,” said George S. Canellos, Co-Director
of the SEC’s Division of Enforcement. “If you abuse your position by
sharing confidential company information with friends and business associates
in exchange for private gain, you will be prosecuted to the fullest extent by
the SEC.”
In
its complaint filed in late 2011, the SEC alleged that the board member
disclosed confidential information to the former hedge fund manager about
Berkshire Hathaway Inc.’s $5 billion investment in Goldman Sachs as well as
nonpublic details about Goldman Sachs’ financial results for the second and
fourth quarters of 2008.
For more information, visit SEC Obtains $13.9 Million Penalty Against Rajat Gupta.
