(Reuters) -
Federal prosecutors have expanded their insider trading case against former
Goldman Sachs Group Inc (GS.N) director Rajat Gupta, saying the illegal activity
lasted longer and involved more trades than alleged.
An amended
indictment made public on Tuesday expands the period in which Gupta supposedly
provided illegal tips to former Galleon Group hedge fund founder Raj
Rajaratnam, now serving an 11-year prison term following his insider trading
conviction.
Gary
Naftalis, a lawyer for Gupta, did not immediately return a call seeking
comment.
Gupta is a
former worldwide chief at the consulting firm McKinsey & Co, and is the
most prominent business executive accused of wrongdoing in a wide-ranging
government insider trading probe centered on hedge funds.
According
to the amended indictment, Rajaratnam bought at least 350,000 Goldman shares on
March 12, 2007, soon after the audit committee of Goldman's board, including
Gupta, discussed the better-than-expected quarterly results that the bank would
release the next day.
It also
said Rajaratnam sold 180,000 shares of Procter & Gamble Co (PG.N) short on
January 29, 2009, after learning details from Gupta, who sat on P&G's
board, about that company's expected earnings announcement the next day.
Gupta was
previously accused in October 2011 of tipping Rajaratnam about Goldman's
activities in September and October 2008, resulting in several trades.
Both
indictments charge Gupta with five counts of securities fraud and one count of
conspiracy.
(Reporting
By Jonathan Stempel, editing by Matthew Lewis)
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