Judge Bars Gupta’s Lawyers From Using Goldman Wiretaps

Jun 12 2012 | 11:26am ET

When it comes to wiretaps, Rajat Gupta cannot win.

Gupta, the former McKinsey & Co. head charged with passing confidential tips to Galleon Group founder Raj Rajaratnam, lost his pre-trial bid to have the wiretaps at the heart of the prosecution’s case thrown out. Now, he’s lost a bid to play a pair of taped phone calls of his own.

U.S. District Judge Jed Rakoff called the tapes, which allegedly include Goldman Sachs banker David Loeb tipping Rajaratnam about two other companies, “blatant hearsay.” Prosecutors have not accused Gupta of tipping Rajaratnam about Intel Corp. or Apple Inc., the companies that Loeb allegedly told Rajaratnam about.

“There is substantial evidence that supports the argument that Mr. Loeb could’ve been the source of the Goldman tips” that prosecutors say Rajaratnam got from Gupta, lawyer David Frankel said. “The tapes could tell the story that Loeb gets the information, which is confidential to Intel, and he reaches out to Mr. Rajaratnam.”

“This is an attempt to prove an alternative view of the underlying facts and blatant hearsay,” Rakoff wrote in the preliminary ruling. He invited Gupta’s defense team to submit a legal brief on the issue before he makes his decision final.

Without the tapes, the defense is prepared to rest, having called Gupta’s daughter and several friends to the stand as character witnesses yesterday. Gupta’s daughter, Geentanjali, who worked at Harvard Management Co., will resume her testimony today.

“I have always observed since my childhood days that Rajat is straightforward, direct, truthful and inspires trust,” former World Bank official Anil Sood told the jury. “I have seen him consistently demonstrate these values.”


In Depth

Hedge Fund Selection: Sussex Partners’ Patrick Ghali Bullish On The Best Of The Best

Oct 2 2014 | 5:56am ET

Ten years ago, Patrick Ghali and Robin Nydes co-founded Sussex Partners with the...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.