Here’s some news that should be comforting not only to former Goldman Sachs board member Rajat Gupta, but anyone who has in the past or is considering in the future leaking non-public details about a company to a hedge fund manager who’ll proceed to trade on them– should you be caught on tape doing just that, criminal charges are unlikely.
Prosecutors in the trial of Rajaratnam this week played a tape of the call in which the former Goldman Sachs board member chatted casually with the hedge fund manager about the bank’s talks on buying Wachovia or AIG…The exchange, along with additional government allegations divulged in recent weeks, isn’t a smoking gun that shows Gupta meant to break the law, said Tom Dewey, a lawyer at New York’s Dewey Pegno & Kramarsky LLP. Richard Scheff, who practices criminal law and isn’t involved in the case, called the prospect of charges “unlikely.”
Early in the trial, prosecutors displayed a photograph of Gupta on a video screen while Assistant U.S. Attorney Jonathan Streeter told jurors he was a “co-conspirator” who leaked tips about Goldman Sachs’ earnings and a 2008 investment in the bank by Warren Buffett’s Berkshire Hathaway Inc. Within minutes of attending two board meetings, Gupta, 62, called Rajaratnam, 53, who traded on the tips, Streeter said. Prosecutors on March 15 played a wiretap recording of the July 29, 2008, telephone call between Gupta and Rajaratnam. In it, Rajaratnam asked about a “rumor that Goldman may look to buy a commercial bank.” In response, Gupta said, “Yeah, this is being discussed” and that the board was “divided” on suggestions that it purchase Wachovia…Streeter said the government also has an October 2008 wiretap recording of Rajaratnam in which the fund manager tells “employees” that “he was told by a Goldman Sachs board member that the investment bank was losing $2 a share,” Streeter said.
So the key takeaway here seems to be that if you act natural, if you keep things “casual,” like you’re just calling to say hey, shoot the breeze, mention some stuff that’s been going on at work and see what’s on tap for the weekend, you should be okay.
Gupta Tapes Not Enough For Charges In Galleon Case [Bloomberg]
Earlier: Goldman Sachs Board Member Couldn’t Wait A Single Second To Pass Insider Information To Raj Rajaratnam
I see Tom left Dewey, Scruem and Howe
I can’t decide who i think is more slimey, Raj for thinking he could just talk to board members of public companies whenever and trade on inside info without reprocussion, or the sleezy lawyers who have convinced him to go to trial to fight this preponderance of evidence against him in order to rape him for millions in fees
“Da plane, da plane!”
Listen up sheeple and listen good: There’s rich people “justice” and proletariat justice. Once you figure that out, the less angry you will be when you read this sort of stuff.
-conspiracy theorist guy
Cant they all see Raj and his people are lizard people and in cahoots with the rest of the lizard people, illuminati and free masons on wall street?
ITS ALL ONE BIG LIE.
- Paranoid Conspiracy Theorist
No, no. It’s the cupcake that’s a lie.
Not to mention the Bilderbergs. Never forget the Bilderbergs.
“I gave my boys the same skinny as this d-bag Gupta gave Raj and all I got was a calzone”
Raj, definitely. The lawyers who are taking this fat f*ck for a ride are to be commended.
Raj, definitely. The lawyers who are taking this fat f*ck for a ride are to be commended.
That’s what I said.
Can Raj even prove he was born in America? Where is the birth certificate???
So, sticking $51.22 of ill-gotten gains up the vay-jay will probably get me 5+yrs, but this shit is OK?
Why is this even a question, he was born in Sri Lanka. If he was born in America he’d probably end up in a much easier profession.
-Guy who didnt take the easy way out, but maybe should have -
Is trading tips like sword fighting?
What’s the next tip – nod once for yes and two for no!
What’s the next tip – nod once for yes and two for no!
What’s the problem? It’s just the tip.
You delivered to the wrong building, zerohedge.com is 3 blocks away, opposite the ladyboyx.com in the SEC tower.
You delivered to the wrong building, zerohedge.com is 3 blocks away, opposite the ladyboyx.com in the SEC tower.
Rajat Kumar Gupta, Rakesh Saxena and John Doerr worked together to take over international
mining interests for materials used for the batteries in Electric Cars. These include lithium and “rare earth
metals” areas in countries in revolution. They manipulated McKinsey &
Company consultants to insert them into agencies with jurisdiction over the
funding and policies of those areas.