Wednesday, May 16, 2012

Gupta Stake in Fund Increased After Tip





After Goldman Director Rajat Gupta told Galleon Group LLC co-founder Raj Rajaratnam about topics raised at a bank board meeting, the hedge fund manager increased by $4 million Gupta’s stake in a fund in which both men were investors, prosecutors alleged.

The government claim was included in a motion filed yesterday in Manhattan federal court. The U.S. is seeking to use a wiretap recording of a July 29, 2008, call between the two men at Gupta’s May 21 trial on insider trading charges.

 “The evidence at trial will show that Rajaratnam agreed to increase the value of Gupta’s stake by approximately $4 million, and shortly after the July 29 call, Rajaratnam had a Galleon employee send Gupta a letter, on Galleon letterhead, memorializing the increased value,” the government said….

Read more about it at http://www.bloomberg.com/news/2012-05-15/gupta-stake-in-fund-increased-after-tip-u-s-says.html

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