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Crucial week for Gupta as insider trading trial draws to close

Last Updated: Sunday, June 10, 2012 - 20:16

New York: A crucial week begins tomorrow for Goldman Sachs's India-born former director as his high-profile insider-trading trial in Manhattan federal court draws to a close and the case goes to the jury for deliberations.

63-year-old Gupta denied that he passed secret corporate information about Goldman Sachs and Proctor and Gamble, which he became privy to during company board meetings, to convicted hedge fund founder Raj Rajaratnam.

The closely watched trial, which began on May 21, is in its final week and after the prosecution rested its case last Friday.

The defence began presenting its witnesses, starting with a video deposition of Gupta's "close friend" and Berkshire Hathaway's India-born re-insurance head Ajit Jain.

Seen as a possible successor to Warren Buffett, Jain testified that Gupta had told him in 2009 that he had been "gipped, swindled and cheated" by Galleon hedge fund founder Rajaratnam, currently serving an 11 year prison term.

US judge Jed Rakoff told the 12-member jury that the defence would rest its case by Tuesday and closing arguments are expected on Wednesday.

Gupta's lawyer had indicated last week that his client is "highly likely" to take the witness stand in his own defense on Tuesday.

The case would go to the jury by June 14 after which the verdict could come any day.

Gupta been charged with one count of conspiracy to commit securities fraud and five counts of securities fraud.

If convicted, the IIT and Harvard educated Wall Street executive faces a maximum penalty of five years in prison on the conspiracy charge and 20 years in prison on each of the securities fraud charges.


First Published: Sunday, June 10, 2012 - 20:16
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