Excerpt:- Gupta began doing business with a group of men who, like him, had connections in the U.S. and India: Parag Saxena, Victor Menezes, and Rajaratnam. All three had had trouble with regulatory authorities. In 2006 he co-founded a fund called New Silk Route Partners with Saxena and Menezes. Rajaratnam contributed $50 million to the fund, which eventually raised $1.3 billion to invest in ventures in India and other emerging economies. Civil Claims
Saxena had paid the SEC a $250,000 fine in 1994 to settle civil claims that he received pre-initial-public-offering stock at big discounts and subsequently recommended the stocks to his clients at Chancellor Investment Management after they went public. In 2006, Menezes, a former Citigroup Inc. (C) <http://www.bloomberg.com/apps/quote?ticker=C:US> senior vice- chairman, paid the SEC $2.7 million in a fine and disgorged profits after he dumped his Citigroup stock ahead of an announcement of bad news from a subsidiary in Argentina <http://topics.bloomberg.com/argentina/>. And in 2005, before Rajaratnam’s indictment, Galleon Group paid $2 million in a fine and disgorged profits to settle claims that it had made improper trades. Some worried about Gupta. “I told him once, ‘If you are in a herd of pigs, you’ll also smell like a pig,’” Bala Balachandran, a business professor who has known Gupta for three decades, said in an interview last year. In 2007, Gupta joined Rajaratnam and a third man to form the GB Voyager Multi-Strategy Fund, contributing $10 million of his own. Ends Read all about it @ http://www.bloomberg.com/news/2011-04-13/rajat-gupta-mystery-remains-as-rajaratnam-s-insider-trial-nears-denouement.html -- DEV BOREM KORUM Gabe Menezes.
