Rajat Gupta fined 13.9 million for insider trading

Gupta,64,is appealing his June 2012 conviction and two-year prison term for having fed confidential tips he learned at Goldman board meetings in the second half of 2008 to Rajaratnam,a former billionaire who ran Galleon Group. The tips included news about Goldmans financial results and a crucial 5 billion investment during the financial crisis by Berkshire Hathaway Inc.

Gupta is a former global managing director of the consulting from McKinsey amp; Co. He remains free during his appeal. The sanctions imposed today send a clear message to board members who are entrusted with protecting the confidences of the companies they serve, George Canellos,co-director of the SECs enforcement division,said. A copy of Rakoffs order was not immediately available.

Rajaratnam,serving an 11-year prison term,was the highest-ranking financial executive convicted in a multi-year federal crackdown on insider trading.