Thursday, June 7, 2012

Gupta defense sows doubt with phone records





Lawyers for former Goldman Sachs Group Inc board member Rajat Gupta on Wednesday tried to use phone records to sow doubt at his insider-trading trial about contact with now-imprisoned hedge fund founder Raj Rajaratnam, Reuters reports.

Gupta, 63, a onetime global head of McKinsey & Co management consultancy, is charged with securities fraud and conspiracy in U.S. District Court in New York over allegations he leaked boardroom secrets to Rajaratnam and his Galleon Group between March 2007 and January 2009.

Phone records introduced to the jury by prosecutors showed that Gupta's phone and Rajaratnam's phone connecting numerous times in 2007 and 2008. A Goldman employee, Joe Yanigisawa, verified the records but was then asked by a defense lawyer about certain telephone connections between the Galleon office and another number assigned to Goldman Sachs employee David Loeb in New York.

He confirmed numerous calls between Loeb and Rajaratnam or one of his traders, Adam Smith, on the sheets of phone numbers. A main defense argument is that Rajaratnam had sources other than Gupta to provide him confidential company information. Smith has pleaded guilty in the case. Rajaratnam was convicted at trial a year ago….


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