Rajat Gupta: American Dream Gone Wrong?
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Rajat Gupta Interoduction Rajat Gupta was born on Dec 2, 1948, in the city of Kolkata , India, in a middle class family. His father, Ashwini Kumar Gupta, was a prominent freedom fighter and had been jailed multiple times by the British for fighting for the cause. He worked as a journalist for Ananda Publishers , while his mother, Pran Kumari Gupta, taught at a Montessori school. Gupta was the second of three siblings. When Gupta was five, the family moved to New Delhi , where his father went on to start the newspaper called the Hindustan Standard...... Career After graduating from HBS, Gupta applied for a job in McKinsey & Company. Even with his stellar academic credentials, he was rejected because of inadequate work experience; a decision that was overturned after Gupta’s HBS professor, Walter J. Salmon, called Ron Daniel, the then head of McKinsey’s New York office, on Gupta's behalf. Gupta was one of the earliest Indian-Americans at the consultancy.... Outside Mckinsey & CompanyDuring the fag end of his term as McKinsey’s managing director, Gupta co-founded Scandent Solutions , an IT solutions firm in India, along with Ramesh Vangal . After his stint at McKinsey, Gupta co-founded and chaired the private equity firm New Silk Route , formerly named Taj Capital Partners, with Parag Saxena and Victor Menezes . ... |
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Philanthropic work Rajat Gupta was not only a honcho of one of the world’s most successful multinationals, who are infamous for their greed and unemotional behavior, but he was also a person who gave back to society. Gupta’s philanthropic, charitable, and volunteer efforts mainly focused on the areas of education, global health, and global business. Besides his tenure at McKinsey, Gupta also served on the boards of the Rockefeller Foundation and the Bill & Melinda Gates Foundation . ...
Raj Rajaratnam Raj Rajaratnam (Rajaratnam) was born in the city of Colombo, Sri Lanka (formerly known as Ceylon) in 1957 . He came from a well-to-do family, his father being the head of the Singer Sewing machine Company for South Asia . Rajaratnam did his schooling in Sri Lanka. Post independence, Sri Lanka was plagued by ethnic conflict. Sensing that the ethnic conflict might turn violent, the family immigrated to England in 1971. In London, Rajaratnam studied in Dulwich College and then went on to study engineering at the University of Sussex.....
Philanthropic work Other than his trading skills and a keen eye for investment opportunities, Rajaratnam was also known for his generosity. In November 2009, after the ethnic clashes in Sri Lanka which had lasted for many decades finally ended, Rajaratnam pledged to donate USD 1 million to help rehabilitate the LTTE combatants. He also donated generously to clear landmines in the civil war affected areas of Sri Lanka . . ...
The Mess Rajaratnam’s rise to fame and fortune was not without obstacles. A series of legal challenges began in 2001, when a former Intel employee, Roomy Khan (Khan), admitted to giving the Galleon Fund confidential information about Intel. Khan also pleaded guilty to federal fraud charges. In 2004, the Internal Revenue Service (IRS) discovered that Rajaratnam and another Galleon executive had created a fake tax shelter in 1999 to hide income to the tune of USD 52 million . e...
Allegations Of Insideer Trading Even though it was not clear when exactly Rajaratnam and Rajat Gupta met and became partners, the prosecutors suggested that it was at the fag end of 1990 when Rajat Gupta was raising funds to set up the Indian School of Business (ISB). During the investigation of Rajaratnam, prosecutors became aware that the Galleon executives had conspired to get confidential information from many firms.
The Judgement On October 24, 2012, The U.S. District Judge Jed S. Rakoff sentenced Rajat Gupta to 2 years in federal prison and fined him USD 5 million. The sentenced was much lighter than the 8 to 10 years which the legal prosecutors had demanded and miniscule compared to the 20-year maximum sentence which he was facing . ...
