A former director of Goldman Sachs has been arrested on charges of insider trading.
Rajat Gupta has been indicted for five counts of securities fraud and one count of conspiracy to commit securities fraud.
It has been reported that Gupta has had dealings with Raj Rajaratnam a co-founder of the Galleon Group who has had an 11 year sentence for insider trading charges. 6 months ago the SEC filed civil charges against Gupta, he countersued and the case was dropped. The SEC have now filed a complaint against the two men. Gupta could potentially be imprisoned now he faces criminal charges of insider trading.