Tuesday, June 12, 2012

Defense Rests in Insider Rajat Gupta Trial



From Dealbook: Geetanjali Gupta was the final defense witness in the trial of her father, Rajat K. Gupta, a former director of Goldman Sachs and Procter & Gamble. The government has accused Mr. Gupta of leaking boardroom secrets about Goldman and P.&G. to Raj Rajaratnam, who was convicted last year of insider trading. The defense's case amounted to 12 witnesses, many of whom were called to the stand to tell the jury about Mr. Gupta's integrity and honesty.

Other witnesses testified about acrimony that had developed between Mr. Rajaratnam and Mr. Gupta. A key component of the defense is that the two men had a falling out in 2008 after Mr. Gupta lost his entire $10 million investment in a fund run by Mr. Rajaratnam. As a result, the defense has argued, Mr. Gupta had no incentive to tip Mr. Rajaratnam during that period. Mr. Gupta's dispute with Mr. Rajaratnam was the focus of Ms. Gupta's testimony…

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