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Gupta lawyers seek to get wiretapped calls excluded from trial
With less than two weeks left for his trial on insider trading charges, former Goldman Sachs Director Rajat Gupta's lawyers are pushing to get secretly recorded phone conversations between him and convicted hedge fund founder Raj Rajaratnam excluded as evidence, calling them "extremely prejudicial".
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New York: With less than two weeks left for his trial on insider trading charges, former Goldman Sachs Director Rajat Gupta's lawyers are pushing to get secretly recorded phone conversations between him and convicted hedge fund founder Raj Rajaratnam excluded as evidence, calling them "extremely prejudicial".
Gupta's lawyer Gary Naftalis submitted documents in the US District Court, Southern District of New York on Monday arguing that a July 2008 conversation between the two does not contain "direct evidence" that Gupta provided confidential information to Rajaratnam.
Naftalis said in the court filings that the July 29 call is the "only recorded substantive phone conversation" between Gupta and Rajaratnam but the "problem for the government is that this call neither included a tip of material, nonpublic information nor led to any trading by Rajaratnam."
During the 24-minute call, a transcript of which has been submitted in court, Rajaratnam asks Gupta whether he had "heard anything along that line" about a "rumour" that Goldman Sachs is looking to buy a commercial bank.
Gupta replied, "Yeah. This was a big discussion at the board meeting."
Prosecutors are seeking to use this wiretap conversation, as well as 26 other recorded phone conversations, as evidence at the trial which will start on May 21 that Gupta engaged in insider trading.
Gupta's defence has sought to exclude these phone conversations, saying they are "extremely prejudicial" and irrelevant to charges of conspiracy and securities fraud faced by Gupta.
Naftalis said the government's exhibit list for trial includes "at least 26 recorded phone conversations that on their face relate to stocks and conspiracies other than the one charged in the indictment, and that mostly are between Rajaratnam and persons who are not alleged to be co-conspirators of Gupta."
"It appears that the government seeks to reprise the Rajaratnam trial in order to shore up its weak circumstantial case against Gupta, resorting to evidence about other companies and other alleged conspiracies," Naftalis said.
The other wiretaps include calls between Rajaratnam and former hedge-fund manager Danielle Chiesi and with former McKinsey consultant Anil Kumar, who was a key government witness at Rajaratnam's trial.
Chiesi and Kumar have pleaded guilty to the criminal charges in the case.
Gupta has pleaded not guilty to charges of insider trading.
PTI
Gupta's lawyer Gary Naftalis submitted documents in the US District Court, Southern District of New York on Monday arguing that a July 2008 conversation between the two does not contain "direct evidence" that Gupta provided confidential information to Rajaratnam.
Naftalis said in the court filings that the July 29 call is the "only recorded substantive phone conversation" between Gupta and Rajaratnam but the "problem for the government is that this call neither included a tip of material, nonpublic information nor led to any trading by Rajaratnam."
During the 24-minute call, a transcript of which has been submitted in court, Rajaratnam asks Gupta whether he had "heard anything along that line" about a "rumour" that Goldman Sachs is looking to buy a commercial bank.
Gupta replied, "Yeah. This was a big discussion at the board meeting."
Prosecutors are seeking to use this wiretap conversation, as well as 26 other recorded phone conversations, as evidence at the trial which will start on May 21 that Gupta engaged in insider trading.
Gupta's defence has sought to exclude these phone conversations, saying they are "extremely prejudicial" and irrelevant to charges of conspiracy and securities fraud faced by Gupta.
Naftalis said the government's exhibit list for trial includes "at least 26 recorded phone conversations that on their face relate to stocks and conspiracies other than the one charged in the indictment, and that mostly are between Rajaratnam and persons who are not alleged to be co-conspirators of Gupta."
"It appears that the government seeks to reprise the Rajaratnam trial in order to shore up its weak circumstantial case against Gupta, resorting to evidence about other companies and other alleged conspiracies," Naftalis said.
The other wiretaps include calls between Rajaratnam and former hedge-fund manager Danielle Chiesi and with former McKinsey consultant Anil Kumar, who was a key government witness at Rajaratnam's trial.
Chiesi and Kumar have pleaded guilty to the criminal charges in the case.
Gupta has pleaded not guilty to charges of insider trading.
PTI
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