Goldman Director, Ex-Galleon Trader Testify In Gupta Case

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.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of