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| Ex-Goldman Sachs director Rajat Gupta guilty of fraud | Ex-Goldman Sachs director Rajat Gupta guilty of fraud |
| (40 minutes later) | |
| A former Goldman Sachs board member has been found guilty of four criminal counts of insider trading by a federal court in New York. | A former Goldman Sachs board member has been found guilty of four criminal counts of insider trading by a federal court in New York. |
| Rajat Gupta, 63, denied illegally leaking boardroom secrets to Raj Rajaratnam, a former hedge fund manager now serving 11 years in prison. | Rajat Gupta, 63, denied illegally leaking boardroom secrets to Raj Rajaratnam, a former hedge fund manager now serving 11 years in prison. |
| The jury acquitted Gupta, a former managing partner of consulting giant McKinsey & Co, of two other charges. | The jury acquitted Gupta, a former managing partner of consulting giant McKinsey & Co, of two other charges. |
| Gupta could face up to 20 years in jail when he is sentenced on 18 October. | Gupta could face up to 20 years in jail when he is sentenced on 18 October. |
| Prosecutors said that, in secret recordings of conversations with Rajaratnam, Gupta shared corporate secrets as though "he was talking about what happened at a Yankee game yesterday". | |
| But defence lawyers told the jury that the use of phone records and FBI wiretaps only created the illusion of illegal business activities. | |
| "That is a gambit that can bamboozle people into thinking something was proven when it wasn't," defence lawyer Gary Naftalis said. | |
| The trial focused on a phone call made to Rajaratnam on 23 September 2008, minutes after Gupta had listened to a private conference call discussing a $5bn (£3.2bn) investment in Goldman Sachs by Warren Buffett's company Berkshire Hathaway. The deal would be made public after stock markets closed that day. | |
| According to phone records, Rajaratnam bought $40m in Goldman Sachs stock moments after the phone call, earning nearly $1m. | |
| Gupta, who was born in India and educated at Harvard, becomes the most prominent corporate figure to be convicted in a sweeping probe into insider trading. Experts say the conviction sends a message that no-one is off-limits. | |
| He also served on the boards of Procter & Gamble, the Rockefeller Foundation and the Bill and Melinda Gates Foundation. |