Rajat K Gupta, the former Goldman Sachs Group Inc (GS) director accused of insider trading, has taken voluntary leave from New Silk Route Partners, the $1.4 billion private-equity firm he co-founded.
Gupta said he was taking leave to “avoid any distraction and ensure New Silk Route’s continued focus on the execution of its investment strategy,” said a statement from the company today. The move is effective immediately.
Gupta, 62, started New Silk Route in 2006 with partners, including Raj Rajaratnam, the billionaire hedge-fund manager who went on trial this week in New York for insider trading. The US Securities and Exchange Commission on March 1 accused Gupta of passing on confidential information regarding Goldman Sachs to Rajaratnam. Gupta did not return telephone messages seeking comment.
Rupa Ranganathan, a spokeswoman for New Silk Route, did not return a call seeking comment.
Gupta, the former head of consulting firm McKinsey & Co, resigned last week from Procter & Gamble Co (PG)’s board. He had stepped down from Goldman Sach’s board last year.
The SEC accused him of leaking confidential information about Berkshire Hathaway Inc’s $5 billion investment in Goldman Sachs in 2008, as well as quarterly earnings for the New York- based bank and for Procter & Gamble. The tips generated more than $18 million, the regulator said.
