Throughout Raj Rajaratnam’s trial, which could go to the jury as soon as Monday, there has been an elephant in the courtroom: Rajat K Gupta.
Gupta is not being tried here nor has he been charged criminally. Yet hardly a day has passed when the jury in Rajaratnam’s trial has not heard about Gupta, the former head of McKinsey.
Jurors listened to a wiretap on which Gupta, a former director at Goldman Sachs, told Galleon founder Rajaratnam about the bank’s secret board discussions.
On another recorded call, Rajaratnam told his trader that he had received word that something good was going to happen at Goldman.
Prosecutors also presented phone bills and trading records establishing that Rajaratnam traded Goldman stock soon after his phone calls with Gupta.
Still, Gupta is not mentioned in the government’s indictment of Rajaratnam. He has been named a co-conspirator but has not been charged him criminally.
If the SEC prevails, a judge could impose financial penalties on Gupta and bar him from serving as an officer or director of a public company.