Lawyers for Goldman Sachs's former director Rajat Gupta, ontrial for inside trading, have suggested that leaks from the bank to convictedhedge fund billionaire Raj Rajaratnam came from other sources and not Gupta.
As Joseph Yanagisawa, who works in Goldman Sachs'stechnology unit, Wednesday testified about records of phone calls betweenGupta's office and Chief Executive Officer Lloyd Blankfein's office, defencelawyer David Frankel confronted him with the logs of another executive.
The logs showed more than two dozen calls between phonesassociated with David Loeb, Goldman Sachs's head of Asia Equity Sales in NewYork, and Galleon Group co-founder Rajaratnam and others at Galleon.
These included calls from Loeb's phones to numbersassociated with Rajaratnam and Galleon trader Adam Smith on dates when Gupta isalleged to have tipped Rajaratnam, bolstering a defence claim that it was Loebor others who leaked data.
Prosecutors say that within seconds of hanging up from theboard 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 Guptastood to profit from investments he made in funds managed by Rajaratnam, butconceded she had "no information," whether Gupta actually profited orif he got back his $10 million investment.
Isvari Mahadeva, former Galleon portfolio manager said thefund firm's records showed Rajaratnam, Gupta and a third money manager, RaviTrehan, formed Voyager Capital Partners in 2005, with Gupta contributing $5million.
She said that in 2007 Gupta had an option to invest anadditional $5 million that could reap 10 percent in additional profit.
"I was told he chose to exercise the option," saidMahadeva, who worked for Galleon for 12 years until Rajaratnam was arrested inOctober 2009.