Rajat Gupta’s lawyers say traders ‘bragged’ falsely about tipstersMay 31st, 2012 - 11:28 am ICT by IANS
New York, May 31 (IANS) Convicted hedge fund billionaire Raj Rajaratnam and traders at his Galleon Group “exaggerated” and “bragged” about having sources of inside information, lawyers for Indian American businessman Rajat Gupta have suggested.
Gary Naftalis, a lawyer for Gupta, former director of Goldman Sachs and Procter & Gamble, who’s on trial on insider trading charges made the suggestion in Manhattan federal court Wednesday during cross-examination of a prosecution witness.
Questioning Michael Cardillo, an ex-Galleon portfolio manager who has pleaded guilty, Naftalis, asked about Rajaratnam and other Galleon traders’ claims about their sources of illegal tips.
“Were there others at Galleon who claimed to have sources of inside information that they did not have?” he asked.
After an objection by prosecutors, US District Judge Jed S. Rakoff barred Cardillo from answering.
Cardillo testified last week that he traded on P&G; stock in 2009 after learning that Rajaratnam had a “guy” on the company’s board. Prosecution alleges Gupta was the person on the P&G; board.
“At morning meetings with Raj Rajaratnam, did people talk about or exaggerate their sources of inside information from time to time?” Naftalis asked.
“There were rare occasions when it happened,” Cardillo said.
Naftalis also sought to discredit Cardillo by eliciting testimony that he had worn a recording device to try to capture incriminating information against a friend, days before that friend’s wedding.
Cardillo, he suggested cut a deal with the government by pleading guilty to one count of securities fraud when he faced charges relating to five other stocks.
Prosecutors Wednesday introduced evidence that a key card assigned to Gupta was swiped into Galleon’s offices at 11.36 a.m. on March 12, 2007, which according to Gupta’s calendar was when he was to dial into a Goldman Sachs audit committee meeting to discuss its first-quarter earnings.
Prosecutors allege that 25 minutes after the audit committee meeting ended, Galleon funds bought 350,000 Goldman Sachs shares. The next day Goldman announced earnings that exceeded analyst estimates.
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- 'Rajat Gupta cannot take a Mother Teresa defence' - May 18, 2012
- Rajat Gupta's lawyers say others tipped Rajaratnam - Jun 07, 2012
- Rajat Gupta's plea on wiretaps declined - Jun 12, 2012
- US judge to rule on evidence about Reliance at Gupta trial - May 30, 2012
- Rajat Gupta was on Rajaratnam's 'Important People' list: Witness - May 23, 2012
- Rajat Gupta's alleged tips were publicly known: Defence - Jun 09, 2012
- Rajat Gupta threw away his duties: Prosecution - May 22, 2012
- US drops charges against Rajat Gupta - Aug 06, 2011
- Rajat Gupta, Rajaratnam had animosity: defence lawyer - Mar 03, 2012
- Prosecutors 'tarring' Rajat Gupta: US judge - Jun 02, 2012
- Rajat Gupta asks US judge to hear his suit - Apr 13, 2011
- Rajaratnam made $63.8 mn through inside trading - Apr 07, 2011
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