Thursday, May 17, 2012

Play taps for Rajat: Judge denies Gupta’s wiretap motion





Ex-Goldman Sachs director Rajat Gupta lost his bid to get three key wiretaps tossed as evidence in his upcoming insider-trading trial, according to a NY Post report.   Manhattan federal judge Jed Rakoff gave tentative approval yesterday for the jury to hear the wiretaps, which are crucial to the government’s case against Gupta.

A former head of McKinsey & Co., who also sat on Procter & Gamble’s board, Gupta is accused of feeding tips to ex-hedge funder Raj Rajaratnam, who began an 11-year prison term last October for insider trading.

Rakoff said he will allow the government to play the wiretaps if, during the trial, prosecutors first prove the alleged conspiracy between Gupta and Galleon Group founder Rajaratnam.


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