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Rajat Gupta leaves P&G board after charges

Rajat Gupta, charged with leaking inside information while on Goldman Sachs's board, resigns from Procter & Gamble's board.

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Rajat Gupta, then chairman of the Global Fund to Fight AIDS, Tuberculosis and Malaria, is pictured at Zambia's Lusaka International Airport in this March 9, 2008 file photo. In the wake of formal charges of leaking inside information to Galleon Group founder Raj Rajaratnam, Mr. Gupta has resigned from Procter & Gamble's board.

Mackson Wasamunu/Reuters/File

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Former Goldman Sachs board member Rajat K. Gupta has resigned from Procter & Gamble's board after federal regulators charged him with insider trading.

The Securities and Exchange Commission announced the civil charges against Rajat Gupta on Tuesday. The agency says Gupta gave Raj Rajaratnam, the founder of the Galleon Group hedge fund, confidential information about quarterly earnings of Goldman and Procter & Gamble.

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Gupta also is a board member of AMR Corp., the parent company of American Airlines.

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The case against Gupta will be heard by an administrative law judge at the SEC. The SEC says the proceeding will determine any restitution and civil fines Gupta must pay and whether he may serve as an officer or director of a public company.