BUSINESS

Ex-Goldman Director Rajat Gupta Fined $13.9 Million, Banned From Company Boards In Insider Trading Case

NEW YORK, NY - OCTOBER 24:  Rajat Gupta, former Goldman Sachs Inc. director and former senior partner at McKinsey & Co., exit
NEW YORK, NY - OCTOBER 24: Rajat Gupta, former Goldman Sachs Inc. director and former senior partner at McKinsey & Co., exits Federal court after being sentenced to two years in prison on October 24, 2012 in New York City. Gupta, 63, was convicted by a federal jury in June for leaking inside information to hedge-fund manager Raj Rajaratnam. He was also ordered to pay a $5 million fine. (Photo by Spencer Platt/Getty Images)

July 17 (Reuters) - Former Goldman Sachs Group Inc Director Rajat Gupta was ordered to pay a $13.9 million penalty and banned from serving as an officer or director of a public company for having illegally passed corporate secrets to former hedge fund manager Raj Rajaratnam, a top U.S. regulator said on Wednesday.

The U.S. Securities and Exchange Commission said the order was issued earlier in the day by U.S. District Judge Jed Rakoff in Manhattan, who also oversaw Gupta's related criminal trial.

Gupta is appealing his June 2012 conviction and two-year prison term for having fed confidential information he learned at Goldman board meetings to Rajaratnam, a former billionaire who ran Galleon Group.

A lawyer for Gupta was not immediately available for comment.

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