Prosecutors Dismiss Gupta Wiretap Dismissal Bid

Jan 20 2012 | 12:52pm ET

Federal prosecutors yesterday filed what is becoming a familiar motion, defending their use of wiretaps in insider-trading cases after the latest defendant challenged them.

In response to former McKinsey & Co. chief Rajat Gupta's motion earlier this month to have the wiretap evidence declared inadmissible, the government noted that in every previous case involving the wiretaps, their legality was upheld and they were permitted to be used in court.

"In an effort to suppress incriminating wiretap evidence against him, Gupta has mimicked [Galleon Group founder Raj] Rajaratnam's arguments in Rajaratnam's failed attempt to suppress the wiretap evidence," prosecutors wrote.

Gupta is accused of passing Rajaratnam confidential information about Goldman Sachs and Procter & Gamble, on whose boards of directors he served. Gupta's attorneys have said that the judge in the Rajaratnam case erred in allowing their use in a trial that ended with Rajaratnam's conviction and sentencing to 11 years in prison. Gupta's voice was heard on a wiretapped conversation with Rajaratnam at that trial.

Prosecutors, for their part, noted that six different judges approved the wiretaps.

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