Rajat Gupta was convicted in 2012 of passing illegal tips about Goldman Sachs to Galleon Group founder Raj Rajaratnam.
The court rejected Rajaratnam's arguments that wiretap evidence in his case should have been suppressed.
Testifying for the government on the eighth day of 63-year-old Gupta's insider trading trial yesterday, former marketing executive at Sri Lankan native Rajaratnam's Galleon hedge fund Ayad Alhadi disclosed that Gupta had been secretly serving as a Galleon executive.
Raj Rajaratnam, the main accused in the largest hedge fund insider trading case in the United States history was on Wednesday found guilty on all 14 counts of securities fraud and conspiracy.
Jailed hedge-fund founder Raj Rajaratnam has agreed to pay $1.45 million to settle a civil lawsuit filed by US regulator SEC against him and India-born former Goldman Sachs director Rajat Gupta for their roles in one of the largest insider-trading schemes in US history.
The 15-page judgment is amazingly lucid, elegant and balanced.
Executive is facing probe for allegedly leaking confidential information to former Galleon Group co-founder Raj Rajaratnam.
He might have presided over assets worth billions of dollars, but Raj Rajaratnam will have to work for 12 to 17 cents an hour cleaning the kitchen or the toilet in prison.
In an interview to Newsweek magazine, Rajaratnam, who will serve 11 years in prison, said the US government wanted him to 'wear a wire' and tape his conversations with Gupta, former chief executive officer of McKinsey.
Gupta, who has not been indicted in the criminal trial of Galleon Group founder Raj Rajaratnam, faces civil charges from the Securities and Exchange Commission for allegedly passing confidential information about Goldman Sachs to the defendant.
Sri Lanka-born billionaire Raj Rajaratnam's defence team on Wednesday told a US jury that his trading in Goldman Sachs was not based on insider information, but a great deal of research and discussion on the investment bank, especially during the financial crisis.
Assistant US Attorney Jonathan Streeter has told US District Judge Richard Holwell that the government plans to present two more witnesses before wrapping up.
During the trial proceedings on Tuesday, John Dowd, Galleon Group founder Rajaratnam's defence lawyer, cross-examined Kumar, a former McKinsey & Co. partner who gave his direct testimony.
The much-awaited trial of Raj Rajaratnam, founder of erstwhile Galleon Group, who has been indicted by Federal authorities in the biggest insider trading case on the Wall Street, began on Tuesday in Manhattan Federal Court.
A US court has denied a bid by billionaire hedge fund founder Raj Rajaratnam, convicted in May this year on insider trading charges, to reverse the verdict handed by the jury in his case.
Six months of investigation, mostly through telephone-tapping, 12 months of analysis of evidence and prosecution, 11 days of deliberation and, finally, a conviction.
In the final part of the government rebuttal, US assistant attorney Jonathan Streeter contested claims made by defense attorney, John Dowd, that government witnesses told lies on the stand.
John Dowd, Rajaratnam's lawyer, asked the jury why Rajat Gupta, 62, would risk his entire career and reputation for nothing.
Galleon Group founder Raj Rajaratnam's defence team have rested their case in the biggest hedge fund insider trading trial in the US history. Rajaratnam's defence rested their case on Monday.
Former Intel executive and key government witness Rajiv Goel has said that he was not joking with Galleon Group founder Raj Rajaratnam when telling him about the dealings of his company.
The central question of this insider trading case is whether the Sri Lankan born billionaire earned $45 million by using leaked confidential information.
Both the prosecution and defence made opening statements on the second day of the trial involving the Sri Lankan-born billionaire who faces charges of 14 counts of security fraud and conspiracy.
Raj Rajaratnam, the Galleon Group founder accused of masterminding the largest insider trading scam in the US history, has asked a judge to exclude some wiretaps from his trial next month, arguing they have little to do with the case.
Since April 25, 12 jury members have been deliberating on the 14 counts of securities fraud and conspiracy charges levied against the main accused Raj Rajaratnam.
Raj Rajaratnam, the key accused in the biggest insider trading case in US history, worked hard to learn how the markets was operating and didn't need illegal tips to make money, a former executive of the hedge fund has testified.
Smith, who is the US government's third key witness in the case, had pleaded guilty in January.
Former McKinsey director Anil Kumar on Friday testified against his ex-Wharton classmate and Sri Lankan-born billionaire Raj Rajaratnam in the biggest insider trading case to hit US courts in decades.
Sunil Bhalla, a senior executive with Polycom, along with three others was named in fresh charges filed by the US Securities and Exchange Commission on Monday.
Rajiv Goel, a former Indian American Intel executive, has said that he passed secret tips to his 'friend' Raj Rajaratnam, the main accused in the largest insider trading case to hit American courts in decades.
Rajaratnam, 52, founder of the Galleon Group, was indicted on October 16 for insider trading. The litigants have accused him of knowingly financing the LTTE and providing it with other forms of support through front organisations.
If convicted all of them face imprisonment of up to 20 years, according to the indictment, which reads that the defendants "routinely received inside information directly or indirectly from insiders and provided it to each other for the purpose of trading based on the information", filed in the US court.
The report by the Wall Street Journal said that this Tipper X is Thomas Hardin, a 32-year-old trader at hedge fund Lanexa Global Management.
The Gupta case is SEC v. Gupta, US District Court, Southern District of New York, No. 11-07566.
Rajat Gupta was freed from Federal Medical Centre Devens, a federal correctional facility in Ayer, Massachusetts, on January 5.
© 2026 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances