As Rajat Gupta is in trial for insider trading for giving tips to billionaire hedge fund founder Raj Rajaratnam who’s voice on FBI wiretaps is most powerful of evidence against him – let’s look at most notorious insider trading cases
'The Wall Street Journal' Foster Winans
The Wall Street Journal " columnist R. Foster Winans was convicted in 1985 of giving information to two stockbrokers about stocks he was planning to write about in the "Heard On The Street" column. They used the information to make about $690,000. Winans’ cut was $31,000. Winan was sentenced to 18 months in prison. The other players in the case, including stockbroker Kenneth Felis—and Winans’ roommate, David Carpenter—were also convicted. A second stockbroker, Peter Brant, plead guilty.
Rajat Gupta Insider Trading Trial