SAN FRANCISCO (MarketWatch) -- The Securities and Exchange Commission said Tuesday that it charged former Goldman Sachs Group Inc. GS, +2.24% director Rajat Gupta for allegedly passing inside information to hedge fund billionaire Raj Rajaratnam. Gupta, who served on the board at Goldman and Procter & Gamble PG, +1.29% and was a friend of Rajaratnam, tipped the Galleon Management founder and hedge fund manager with inside information about the quarterly earnings at both companies as well as an impending $5 billion investment by Berkshire Hathaway BRK.A, +1.30% BRK.B, +0.87% in Goldman, the SEC said.