Tuesday, 21 April 2015
Last updated 3 hours ago
Mar 14 2011 | 2:02pm ET
Prosecutors in the Raj Rajaratnam insider-trading trial released the three wiretapped conversations they played on the first day of testimony last week.
In the first, Rajaratnam tells Rajiv Goel, a former Intel Corp. employee who is a cooperating witness in the case, that he bought a large number of PeopleSoft shares in Goel's brokerage account because "I can't buy anymore" and "we know because one of our guys is on the board that they are going to put $41 million in escrow" and that their acquisition would be at $3 per share above the current price. Rajaratnam also complains about Charles Schwab, Goel's brokerage, which he said charged Goel $0.50 more per share than they should have.
In the second, he spoke with a pair of Galleon Group traders, Ian Horowitz and Adam Smith. After Horowitz updates Rajaratnam on Galleon's positions and the market's moves on the day, Smith, who has pleaded guilty in the case, comes on the line to discuss a deal involving Vishay Intertechnology that would never happen.
Finally, jurors heard on the third tape Anil Kumar, a former McKinsey & Co. director, talking about a deal involving Advanced Micro Devices.
"I think you cannot do wrong," Kumar told Rajaratnam. "There will be such a boost from the announcement."
"Should I buy a million?" Rajaratnam asks.
"Yea, go ahead and do that," Kumar, who has also pleaded guilty and is cooperating with prosecutors, replied. Kumar was the second witness called by the prosecution.
Kumar and Rajaratnam then spend a long time discussing former McKinsey chief Rajat Gupta, identified by prosecutors as Rajaratnam's source for inside information about Goldman Sachs and Procter & Gamble; Gupta sat on both boards. The two talked about Gupta's plan to join Kohlberg Kravis Roberts.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…