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The rise and fall of ex-Goldman diector Rajat Gupta


Mike Sangma,CNN-IBN
Oct 28, 2011 at 08:39am IST

New Delhi: Rajat Kumar Gupta, aged 62, educated at IIT Delhi and Harvard Business School. Former Director, Goldman Sachs & Co-Founder of the Indian Business School. And now, an accused in an insider trading case, out on a $ 10 million bail.

If found guilty, the poster-boy of Indian-American Wall Street success could face 105 years in prison.

ALSO SEE Rajat Gupta released on bail, trial on April 9

If Rajat Gupta's fall from grace was stunning, his rise in the world of finance is stuff legends are made of.

Former Infoscion Mohandas Pai said, "Rajat Gupta was a poster-boy. He was the chief of McKinsey worldwide. He is a brilliant man, I met him a couple of times. He set up ISB. Having such type of people getting in to such web is very sad."

Born in Kolkatata in 1948 to a teacher mother, Rajat's father a journalist died when he was 16 years old. Two years later his mother too died leaving Gupta and his 3 sibling to fend for themselves.

After finishing his engineering from IIT Delhi, Gupta went to Harvard Business School for his MBA.

At 45, he was made the chief of McKinsey, the first non-US-born executive to run it, considered then the most influential consulting firm. Clearly there was no holding him back.

But something went wrong. If investigators are to be believed, Gupta allegedly passed on corporate secrets to Raj Rajaratnam, a Sri Lankan born Hedge Fund manger. The FBI alleged that in 2008 and 2009 Gupta passed on sensitive financial tips that causing millions of dollars of illicit profits.

Ad man Suhel Seth said, "It dismayed me it angered me that a man of such great intellect could mess up with such a basic character flaw. It's a bad timing. We didn't need this. He certainly didn't need this. We all knew this was coming so everynone knew something like this would happen."

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