Former P&G director illegally tipped hedge fund manager about company's 2008 sale of Folgers Coffee to J.M. Smucker, prosecutors say
January 6, 2012
– Federal prosecutors say that the former director of Procter & Gamble (P&G) Co. illegally tipped a hedge fund manager about the company’s 2008 sale of Folgers Coffee Co. to J.M. Smucker Co., Bloomberg reported Jan. 5.
Former director Rajat Gupta was indicted last year for insider trading. Prosecutors say he gave unlawful information to now-convicted hedge fund manager Raj Rajaratnam about the Folgers sale. J.M. Smucker bought Folgers for approximately US$3B in June 2008.
The U.S. government might file a superseding indictment against Gupta, prosecutors told U.S. District Judge Jed Rakoff.
Defense lawyers for Gupta say that prosecutors will likely argue that Rajaratnam told another person that Gupta gave him illegal tips. Gupta’s lawyers said they may contend that Rajaratnam has no credibility and that even the government doubts him.
The primary source of this article is Bloomberg, New York, New York, on Jan. 5, 2012.