Earlier this week, former Goldman Sachs board member Rajat K. Gupta was charged with passing material non-public information about GS to Galleon Group founder Raj Rajaratnam, 23 seconds after he heard it from Lloyd Blankfein. It's been noted that in addition to being colleagues Rajat and Raj were also friends. Thick as thieves, if you will. And as friends, Rajaratnam went to bat for his bro, requesting that the SEC not file the "administrative order" against Rajat at all, or at least hold off a li'l while, he was worried about how bad it'd make his friend look (nobody dare say this was actually an attempt by Raj to save his own ass--we're talking about friends helping friends here).
Galleon Group LLC co-founder Raj Rajaratnam and former Goldman Sachs Group Inc. director Rajat Gupta urged the Securities and Exchange Commission not to file an administrative order March 1 against Gupta, according to court records. Rajaratnam, who goes on trial next week for insider trading, today filed a request for additional questioning of potential jurors who will be hearing the case and new jury instructions. The request relates to the SEC’s administrative action against Gupta. As part of his court papers, Rajaratnam’s lawyer provided a copy of a letter sent on Feb. 28 to the SEC.
“Such an action and the resulting publicity will have significant negative ramifications on Mr. Rajaratnam’s criminal trial,” defense attorney John Dowd wrote in the letter. “The negative impact here can be avoided if the Commission refrains from commencing an action until after the criminal case is completed.”
Dowd also says in the letter that Gupta has provided the SEC with “powerful evidence that Mr. Gupta and Mr. Rajaratnam did not engage in insider trading in the stocks of Goldman Sachs and Procter & Gamble,” as the SEC claims.
As for what that "powerful evidence" is, Gupta would rather keep that to himself for now but oh, just you wait.