Gupta, a graduate of Harvard, was head of McKinsey and Company for a time, and has held senior leadership positions at Goldman Sachs and Proctor and Gamble. By all accounts he was well respected.
While NY Times Dealbook is touting this as the first arrest in this scandal to reach beyond Wall Street and into the corporate boardroom, that isn’t completely accurate. Let’s remember that senior executives at IBM (Bob Moffat), Intel (Rajiv Goel), and McKinsey (Anil Kumar), are all paying the price for their parts in this insider trading ring.
In total, 29 defendants have been charged, including both professional traders and corporate insiders. In practice, for an insider trading ring to be effective, there need to be insiders who have access to confidential information.
Nevertheless, whether the charges against Gupta will hold is yet to be seen. What we know for sure is that the story is not over yet.