New insider trading probe may help Rajat GuptaApril 20th, 2012 - 1:55 pm ICT by IANS
New York, April 20 (IANS) In a development that could bolster the defence of former Indian American Goldman Sachs director Rajat Gupta, US prosecutors have started a new insider trading investigation involving a current employee of the firm.
The investigation, first disclosed in a pre-trial hearing for Gupta here Thursday is being conducted by prosecutors in the U.S. Attorney’s office in Los Angeles, CNBC reported.
Gupta’s trial begins May 21 on charges he provided illegal inside information to Galleon Group co-founder Raj Rajaratnam, who was convicted last year of masterminding an alleged $70 million insider trading ring and is serving an 11-year prison sentence.
Defence attorneys claim Gupta was not Rajaratnam’s tipster-that another Goldman employee was, and this new disclosure could bolster that claim.
The employee, who was not identified in court, is reportedly under investigation for providing inside information about Apple and Intel.
The unnamed employee is the second Goldman Sachs person to be mentioned as an alleged tipper to Rajaratnam.
During the court hearing Thursday, Gary Naftalis, Gupta’s lawyer, said he was notified late Wednesday by a prosecutor in New York that the Los Angeles office is investigating a current Goldman employee.
At a court hearing earlier this year, Naftalis said a Goldman employee allegedly passed non-public information about Apple and Intel to Rajaratnam. Neither of the Goldman employees has been accused of wrongdoing.
Gupta has denied wrongdoing. His lawyers have said he and Rajaratnam were no longer friends at the time of the alleged tips.
The lawyers have said “the wrong man is on trial”, citing the other people who may have had the alleged inside information and passed it on to Rajaratnam.
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- US prosecutor says Rajat Gupta part of insider trading - Mar 05, 2011
- Rajat Gupta strikes back at US regulator - Mar 19, 2011
- Rajat Gupta faces more insider-trading charges - Feb 01, 2012
- Rajat Gupta's lawyers say traders 'bragged' falsely about tipsters - May 31, 2012
- Rajat Gupta, Rajaratnam had animosity: defence lawyer - Mar 03, 2012
- US judge to rule on evidence about Reliance at Gupta trial - May 30, 2012
- Rajat Gupta had no motive to leak inside tips: Defcnce - Jun 05, 2012
- Rajat Gupta's lawyers say others tipped Rajaratnam - Jun 07, 2012
- US court hears Rajat Gupta's call to Rajaratnam - May 24, 2012
- Indian American ex-director violated Goldman Sach's policies - Mar 24, 2011
- 'Rajat Gupta cannot take a Mother Teresa defence' - May 18, 2012
- Defence rests case against Indian-origin billionaire Raj Rajaratnam - Apr 19, 2011
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