Gupta Asks Court To Toss Conviction, Wiretaps

May 21 2013 | 1:57pm ET

Former McKinsey & Co. chief Rajat Gupta's lawyers asked a federal appeals court to do what no other judges have done yet: find wiretap evidence inadmissible in an insider-trading case.

The U.S. Second Circuit Court of Appeals heard arguments on Gupta's request to have his conviction thrown out, with the Raj Rajaratnam tipster's team arguing that the wiretaps, on which Gupta is not heard himself, should not have been admitted at last year's trial. Gupta was convicted of passing tips about two companies on whose boards he served, Goldman Sachs and Procter & Gamble, to the Galleon Group founder and was sentenced to two years in prison.

Gupta's lawyer, Seth Waxman, sought to cast doubt on some of the prosecution's best evidence, a phone call—not recorded—by Gupta to Rajaratnam immediately after a Goldman board conference call, at which an investment by Warren Buffett was discussed. One wiretap, soon after that call, shows Rajaratnam telling a Galleon trader that he received a tip that "something good might happen to Goldman."

"In a life full of board meetings, he came out of meetings and returned calls," Waxman said.

The three-judge panel didn't seem convinced.

"Are you telling us that's a coincidence?" U.S. Circuit Judge Jon Newman said.

But another judge on the panel seemed to question whether one call, between Rajaratnam and a Galleon trader, should have been admitted. After prosecutor Richard Tarlowe said that Rajaratnam was "sharing with Lau significant information that the public doesn't have," U.S. Circuit Judge Rosemary Pooler dismissed him, saying, "I didn't see that in the conversation."

A different panel of the same court is considering a similar appeal by Rajaratnam, but has not ruled.


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

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.