Former Goldman Sachs director Rajat Gupta will surrender to the FBI on Wednesday to face criminal charges related to an ongoing insider trading investigation, sources close to the case told The New York Times and Reuters.
Gupta was named as an unindicted co-conspirator in hedge fund founder Raj Rajaratnam's trial earlier this year. He has denied wrongdoing.
The case against Gupta broadens the reach of the probe into the country's most powerful businesses, according to The New York Times. Most of the people charged with insider trading in the last two years worked on Wall Street, the newspaper noted.
Aside from being a director at Goldman Sachs, Gupta also sat on the board of Procter & Gamble and led one of the world's most powerful consulting companies, McKinsey & Company, the Times reported.
Rajaratnam was sentenced to 11-years in prison this month.
Gupta's attorney, Gary Naftalis, called any charges against Gupta "totally baseless."
"The facts demonstrate that Mr. Gupta is an innocent man and that he has always acted with honesty and integrity," he said in a statement to NBC News. "He did not trade in any securities, did not tip Mr. Rajaratnam so he could trade, and did not share in any profits as part of any quid pro quo."
"Mr. Gupta lost his entire investment in the fund at the time of the events in question, negating any motive to deviate from a lifetime of probity and distinguished service," his attorney said.
