STOCK MARKET BSE NSE

Rajat Gupta's lawyers say others tipped Rajaratnam

Lawyers for the Goldman Sachs\'s former director, on trial for inside trading, have suggested that leaks from the bank to convicted hedge fund billionaire Raj Rajaratnam came from other sources and not Gupta.

Published: 07th June 2012 02:15 PM  |   Last Updated: 16th October 2012 11:53 AM   |  A+A-

By IANS

Lawyers for Goldman Sachs's former director Rajat Gupta, on trial for inside trading, have suggested that leaks from the bank to convicted hedge fund billionaire Raj Rajaratnam came from other sources and not Gupta.

As Joseph Yanagisawa, who works in Goldman Sachs's technology unit, Wednesday testified about records of phone calls between Gupta's office and Chief Executive Officer Lloyd Blankfein's office, defence lawyer David Frankel confronted him with the logs of another executive.

The logs showed more than two dozen calls between phones associated with David Loeb, Goldman Sachs's head of Asia Equity Sales in New York, and Galleon Group co-founder Rajaratnam and others at Galleon.

These included calls from Loeb's phones to numbers associated with Rajaratnam and Galleon trader Adam Smith on dates when Gupta is alleged to have tipped Rajaratnam, bolstering a defence claim that it was Loeb or others who leaked data.

Prosecutors say that within seconds of hanging up from the board meeting on Sep 23, 2008, Gupta tipped Rajaratnam at around 3:55 p.m. about Berkshire Hathaway's $5 billion investment in Goldman Sachs.

Earlier, an Indian-American witness testified that Gupta stood to profit from investments he made in funds managed by Rajaratnam, but conceded she had "no information," whether Gupta actually profited or if he got back his $10 million investment.

Isvari Mahadeva, former Galleon portfolio manager said the fund firm's records showed Rajaratnam, Gupta and a third money manager, Ravi Trehan, formed Voyager Capital Partners in 2005, with Gupta contributing $5 million.

She said that in 2007 Gupta had an option to invest an additional $5 million that could reap 10 percent in additional profit.

"I was told he chose to exercise the option," said Mahadeva, who worked for Galleon for 12 years until Rajaratnam was arrested in October 2009.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

IPL_2020
flipboard facebook twitter whatsapp