Lawyer: Rajaratnam Called Analyst Who Disputed Inside Info An 'Idiot'

Mar 3 2011 | 12:14pm ET

Galleon Group founder Raj Rajaratnam called an analyst at the hedge fund an "idiot" after he questioned the accused insider-trader's prediction about Goldman Sachs' earnings, the lawyer for the whistleblower in the case said.

Stuart Meissner's interview with CNBC indicates some of the potentially damning testimony his client could offer at Rajaratnam's trial, set to begin on Tuesday. The whistleblower, a former Galleon employee who has not been identified, is in talks with prosecutors about testifying against his old boss.

Among the incidents witnessed by the whistleblower was an outburst by Rajaratnam in late 2007 or early 2008. At a meeting, the Galleon founder "boldly and without any analytical support declared that Goldman's earnings would be an exact figure."

A Galleon analyst, however, disagreed. Irritated by the interruption, Rajaratnam turned to the analyst, who was not identified, a said, "You idiot, I just told you the number."

Rajaratnam is accused of having received confidential information about Goldman's earning from former McKinsey & Co. head Rajat Gupta, who sat on Goldman's board. The Securities and Exchange Commission this week sued Gupta, who has denied any wrongdoing.

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