Thursday, May 24, 2012

First wiretap played at Rajat Gupta insider-trading trial





Reuters reports that a New York jury on Wednesday heard former Goldman director Rajat Gupta on a FBI wiretap casually discussing business with Raj Rajaratnam, the now-imprisoned hedge fund founder he is accused of tipping off about boardroom secrets.

The 23-minute phone call on July 29, 2008 has no direct connection to the criminal charges against Gupta, but prosecutors played it to jurors to show the cozy relationship he had with Galleon Group founder Rajaratnam and their investments together.

"By the way, on that I want you to keep, us to keep having the dialogue as to what ... you know how I can be helpful in Galleon International. By the way not Galleon International, Galleon Group," Gupta told Rajaratnam, re: the court transcript of the conversation.

Their discussion begins with Rajaratnam telling Gupta he heard a rumor that "Goldman might look to buy a commercial bank" and Gupta's response is that "this was a big discussion at the board meeting." Investment bank Goldman did not acquire any bank. The conversation goes on with Gupta seeking career and business advice from Rajaratnam…


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