Ex-Galleon Group trader Michael Cardillo testified yesterday
in the trial of Rajat Gupta that he bought shares of JM Smucker, the maker of
Smucker’s jams, after getting a tip that the company was going to buy Procter
& Gamble’s coffee business, the NY Post reports.
In his second day on the stand, the 35-year-old trader
turned prosecution witness said RK Rajaratnam, the brother of convicted Galleon
boss Raj Rajaratnam, told him the tip “was coming from Raj’s guy at
P&G.” Cardillo said he didn’t know
who “Raj’s guy” was at the time, but prosecutors believe his testimony will
link the leak to Gupta, accused of tipping Raj to confidential info at Goldman
Sachs and P&G, when he served on their boards.
Cardillo said he executed trades for RK, who snapped up as
much as 25 percent of Smucker shares after learning of the tip. Cardillo said
he also bought Smucker stock for himself and fellow portfolio manager Tim
Pierotti...
No comments:
Post a Comment