Goldman Sachs Group’s former director, Rajat Gupta, has requested that a few counts made against him be dismissed. During a Galleon Group LLC probe, Gupta was charged for insider trading. In the indictment, the government looked at two situations in which the co-founder of Galleon, Raj Rajaratnam, traded on details that were obtained from Gupta. Based on Gupta’s filing, the two accounts have been used to make five charges of substantive securities fraud.
The various counts in the indictment result in Gupta being charged repeatedly for 2 alleged offenses. In light of this, Gupta has requested a judge to combine the charges. If not, to ask prosecutors to decide which charges they want to pursue. In another filing made recently, he said asked that wire traps not be used as evidence.
Government Likely to Present Circumstantial Case
A circumstantial case will most likely be presented by the government. This will be based on the timing of the calls that allegedly took place between Rajaratnam and Gupta. Another element that will be taken into consideration will be the recordings that were acquired by wire trapping the former’s call phone.
When Rajaratnam made a similar request – that the intercepts not be used as part of evidence – the court had rejected it. Gupta’s lawyers had stated that this was an incorrect move. There are federal laws that place restrictions on the use of wire traps, especially in investigations of cases related to insider trading.
Mc Kinsey and P&G Cases
In October, Gupta, who led Mc Kinsey and was on the board of P&G, was indicted on several counts by a federal grand jury. This included one count for conspiring to carry out securities fraud. It was for passing on inside information to Rajaratnam. There were five counts of securities fraud too in addition to a lawsuit that the US Securities and Exchange Commission filed against him.
To find out about White Collar Crime Defense in San Francisco, contact Mr. Morales, a Criminal Law Specialist.