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 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.”
, 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.