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

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

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.