SEC v. Gupta, Redux

Most of the recent attention with respect to Rajat Gupta has focused on the criminal indictment.  Less prominant was the action filed by the SEC.  Unlike the prior action, an administrative proceeding which the Commission voluntarily dismissed after an adverse ruling by Judge Rakoff, this one is an injunctive proceeding in federal district court. 

One has to suspect that Gupta will fight the charges (although perhaps not because of the views of an astrologer).  The newly filed action by the SEC once again raises the wisdom of Gupta's efforts to obtain dimissal of the administrative proceeding (we have criticized the court's reasoning on this Blog).  Had the administrative proceeding been taking place, Gupta through discovery might have obtained more insight into the government's theory of the case and the evidence that it intends to present.  Moreover, as we have noted, the settlement of an administrative proceeding is viewed generally as less serious than a settlement of an injunctive proceeding. 

Of course, if Gupta convinces a jury in the criminal case, it may prove to be an advantage to have a jury in the civil case.  Time will tell.