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Goldman Exec, Not Gupta, Tipped Rajaratnam

March 19, 2012
[ by Melanie Gretchen ] Gary Naftalis, Rajat Gupta's lead attorney, boldly defended his client, saying in effect, 'they're going after the wrong man.'  Mr. Naftalis said during a pretrial hearing that there is evidence to prove that a Goldman Sachs executive, and not Rajat Gupta, was the person who tipped off Galleon founder Raj Rajaratnam. According to Mr. Naftalis, federal prosecutors secretly recorded telephone conversations with a Goldman Sachs executive 'leaking' confidential information about technology stocks to Rajaratnam - "smoking gun" evidence that should prove to prosecutors that Rajat Gupta has been falsely accused.  In those recordings, the executive allegedly provides confidential information about Intel and Apple. The Gupta trial is set for 5/21/12, before Judge Jed Rakoff. Inside Goldman Trading. Perhaps separate and apart from Mr. Gupta's trial, though related to the conviction of Rajaratnam, 2 Goldman executives, managing director  David Loeb and technology stock analyst Henry King, have been under investigation as part of the government’s insider trading inquiry.  Both had frequent dealings with Rajaratnam and his colleagues at Galleon Group's hedge fund, as had Gupta, whose taped conversations were played during Rajaratnam's trial. Not "The Year of Goldman Sachs." For further details, go to [Dealbook, 3/16/12].