|Larry Neumeister, ASSOCIATED PRESS|
A federal prosecutor yesterday accused former Goldman Sachs board member
By sharing confidential information with his close friend,
Broadsky recounted how former multibillionaire
"That was trading on secrets coming from someone who actually knew what was happening in the confines of the board room," Broadsky said. "That's called insider trading and that's a serious crime."
The 63-year-old Gupta is also a former director of
A not-guilty plea by Gupta "tells you these charges are false," defense attorney
A key to the case could be a
Prosecutors will try to convince the jury that the intercepted call and other evidence show that Gupta was providing inside tips that gave Rajaratnam an illegal edge in massive stock maneuvers. The tips from Gupta were like "getting tomorrow's business news today," Brodsky said yesterday.
As a Goldman board member, Gupta had intimate knowledge of the confidentiality standards, the prosecutor added.
"He broke the very same rules he put in place," he said.
The government alleges that Gupta benefited because he made investments with Rajaratnam. But the defense claims Gupta lost
Gupta "did no insider trading," his lawyer said. The case, he added, "is based on guess work. It's based on suspicion. … He spoke to someone on the phone and it turned out that person did something wrong."
Rajaratnam, who was born in
Aside from his role at Goldman Sachs, the Indian-born Gupta is the former chief of McKinsey & Co., a highly regarded global consulting firm that zealously guards its reputation for discretion and integrity.
Prosecutors in effect previewed their case against Gupta at the Rajaratnam trial.
Jurors in that case heard testimony that at an
Prosecutors produced phone records that they said show Gupta called Rajaratnam 23 seconds after the meeting ended, causing Rajaratnam to sell his entire position in Goldman the next morning, saving millions of dollars. Also played at trial was the tape of the hedge fund manager grilling Gupta about whether
Prosecutors sought to maximize the impact of the Gupta tape by calling Goldman Sachs chairman
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|Source:||Advance Publications, Inc.|