Prosecutors wrap up case against Gupta, but have no clear evidence | business | Hindustan Times
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Prosecutors wrap up case against Gupta, but have no clear evidence

business Updated: Jun 08, 2012 22:35 IST
HT Correspondent
HT Correspondent
Hindustan Times
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Prosecutors in Rajat Gupta trial on Thursday began wrapping up their arguments presenting exactly how the former McKinsey boss passed on the inside information.

Gupta’s lawyers will start arguing their case on Friday.

The prosecution on Thursday had an FBI agent, James Barnacle, describe in detail —with charts and graphs — how Gupta slipped information to Galleon chief Raj Rajaratnam.

There was a pattern. Soon after a meeting of the board or a committee of a company on which Gupta served as a director, a call went from his office to Galleon.

On October 23, 2008, Gupta is said to have been informed in a conference call that Goldman Sachs was going to post its first quarterly loss. Within 23 seconds of the conference call, a call went out from Galleon boss Rajaratnam, whose phones were being monitored by investigators. This call lasted 33 minutes.

Next morning, Galleon sold 150,000 Goldman shares avoiding a loss of $3.8 million. Rajaratnam told a Galleon employee he had heard from “somebody on the board of Goldman”.

The tip to Rajaratnam was specific. He was told Goldman feared a loss of $2 per share when it announced the quarterly report.

Prosecutors don’t have direct material evidence against Gupta, only circumstantial evidence, which his defence lawyers are expected to emphasise when they begin arguing on Friday.