Insider Case

NEW YORK, October 27, 2011 (AFP) – Ex-Goldman Sachs director Rajat Gupta turned himself in Wednesday to the FBI, and then pleaded not guilty in court to massive securities fraud before being freed on $10 million bail pending trial. The indictment of the biggest fish yet in a growing insider trading scandal reverberated around Wall Street, where more than 50 fraudsters have been netted since 2009 in an intensifying crackdown by prosecutors.

Gupta’s appearance in a Manhattan courtroom was a stunning turnaround for the former managing director of consulting powerhouse McKinsey & Company — a corporate giant who sat on the boards of Goldman Sachs and Procter & Gamble.

Indian-born Gupta stands accused of being the “illegal eyes and ears” of Sri Lankan-born friend Raj Rajaratnam, who turned a tidy profit by buying or selling Goldman shares in his multi-billion-dollar hedge fund complex Galleon.

Gupta was charged Wednesday with five counts of securities fraud and one count of conspiracy to commit securities. The judge freed him on bail but kept his passport, setting a trial date of April 9.

The 62-year-old, who is also know for his philanthropic work through the Bill and Melinda Gates Foundation and The Global Fund, face