A former Goldman Sachs director was accused Wednesday of feeding secret financial information to since-jailed hedge hog Raj Rajaratnam in a massive insider trading scam. Hit the jump to read the story.

Rajat Gupta, 62, a high-rolling Wall Street executive and well-known philanthropist, became the latest suspect busted in a four-year federal probe of Rajaratnam’s Galleon Group.

Gupta “became the illegal eyes and ears in the boardroom for his friend and business associate Raj Rajaratnam, who reaped enormous profits from Mr. Gupta’s breach of duty,” said U.S. Attorney Preet Bharara.

In a pair of cases cited by prosecutors, Gupta contacted Rajaratnam within seconds of hearing confidential financial news in his high-ranking position at Goldman Sachs.

In one case, Gupta’s pal turned the information into an illegal $840,000 profit; in the other, Rajaratnam dodged millions of dollars in losses.

“The information was conveyed by phone so quickly it could be termed instant messaging,” said Janice Fedarcyk, head of the FBI’s New York office.

Gupta was freed after posting $10 million bond, secured by his Connecticut home. He carefully put on a red tie for his appearance before Magistrate Kevin Fox, remaining silent except when asked if he understood his rights.

“Yes I do, your honor,” he replied.

The native of India was ordered to surrender his passport and not to travel outside the United States. A tentative trial date of April 9 was set.

More than two dozen people were convicted or pleaded guilty in the investigation. One-time billionaire Rajaratnam was sentenced this year to 11 years in prison for masterminding the scheme.

Gupta, who was due in Manhattan Federal Court later Wednesday, was charged with one count of conspiracy to commit securities fraud and five counts of securities fraud.

If convicted, he could face 105 years in prison and a possible fine of $25 million. Gupta surrendered to agents at his Connecticut home, and was driven to the FBI’s Manhattan office.

Gupta’s lawyer, in an e-mailed statement, said his client was wrongly targeted.

“The facts demonstrate that Mr. Gupta is an innocent man and that he always acted with honesty and integrity,” said attorney Gary Naftalis.

But the 21-page federal indictment unsealed Wednesday repeatedly linked Gupta and Rajaratnam.

In one particularly damning instance, prosecutors pulled phone records showing Gupta called Rajaratnam a mere 23 seconds after an October 2008 Goldman Sachs board meeting.

Board members were just told the firm was about to post its first quarterly loss since 1999. Rajaratnam sold off his entire Goldman position the next day, saving millions of dollars.

Another tip from Gupta – about Warren Buffett’s interest in making a $5 billion investment in Goldman – helped Rajaratanam to the $840,000 windfall, prosecutors said.

In a third instance, Gupta called Rajaratnam from Switzerland with advance word on Procter & Gamble’s earnings, the indictment charged – leading the hedge fund boss to dump 180,000 shares of stock.

Gupta, born in India, was a Harvard Business School graduate who became a top-level global executive with Goldman Sachs, Procter & Gamble and the parent company of American Airlines.

He was also on the guest list at President Obama’s first state dinner.

Gupta resigned his position as an advisor to the Bill and Melinda Gates Foundation in March when his name surfaced in the probe.

The arrest was the latest blow in the legal back-and-forth with Gupta. The Securities and Exchange Commission brought civil charges against him just prior to his resignation, charging that he leaked the insider tips to Rajaratnam.

Gupta then filed a lawsuit against the SEC, charging the administrative filing undercut his right to a trial. The SEC – while retaining its rights to refile – dropped its legal action in August.