10 CEOs Who Were Jailed

2. Rajat Gupta

Former CEO and Managing Director of McKinsey & Company

Gupta is a former Goldman Sachs board member. He had to resign from his positions at McKinsey and other philanthropic positions after being indicted in October 2011. He was charged with leaking corporate secrets of Goldman Sachs and Procter & Gamble to Raj Rajaratnam, the most infamous hedge fund trader in the world. He was arrested by the Federal Bureau of Investigation (FBI) on October 26, 2011 on the grounds of insider trading with Rajaratnam of the Galleon Group. The Securities and Exchange Commission (SEC) sued Gupta on the very same day the FBI arrested him. Anil Kumar, Director and Senior Partner at McKinsey & Company, was another associate of the duo on this scandal. At first, Gupta pled not guilty in the court, was fined with $10 million and released on bail. However, phone conversations between him and Rajaratnam proved that Gupta was guilty. He is scheduled to be on trial in the U.S. District Court in Manhattan in April 2012. Gupta was deemed as the first Indian-born CEO of a reputed global firm but now his name is tarnished.