Tuesday, 22 July 2014
Last updated 1 hour ago
May 29 2012 | 1:16pm ET
A Goldman Sachs director and a former Galleon Group trader took the stand Friday at Rajat Gupta's insider-trading trial during a shortened, plodding day of testimony frequently punctuated by breaks in the action.
William George, the former Medtronic CEO who has sat on Goldman's board for a decade, testified about several 2008 board meetings after which, prosecutors say, Gupta called Galleon founder Raj Rajaratnam. George also discussed a 2007 offer from Gupta to invest in a new private equity fund he co-founded with Rajaratnam, who was convicted of insider-trading last year.
George said he decided not to invest in New Silk Route.
Following George on the stand was Michael Cardillo, a former Galleon trader and cooperating witness in the case against Rajaratnam. Cardillo, who has pleaded guilty to insider-trading, discussed trades of Procter & Gamble shares he made. Gupta sat on the Procter board.
In one instance, Cardillo said that Rajaratnam's brother, R.K., told him and another Galleon colleague that Rajaratnam's friend on the Procter board was telling him that the company was about to announce a drop in sales growth. Cardillo told the jury, "I remember making a lot of money" on that trade.
The trial resumed today.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…