[ by Melanie Gretchen ] A Goldman Sachs manager director is under investigation for insider trading tips from Galleon Group founder Raj Rajaratnam, based on previously undisclosed e-mails and wiretapped phone call transcripts.  Following the convictions of Galleon founder Raj Rajaratnam and former Goldman director Rajat Gupta, federal prosecutors and the FBI are looking into 3 current Goldman employees mentioned in communications with the hedge fund manager (currently serving 11 years in prison), according to people familiar with the probe. Before a daily "morning meeting" at Galleon, managing director David Loeb, then a senior salesman at Goldman, sent what he called "tiddie biddies" about some top technology firms, including Apple and Intel.  During the course of their communication, Mr. Loeb referred to Rajaratnam with nicknames like "Dr RR" and "big daddie," while signing off with CBF, standing for "chunky but funky," according to colleagues. In these messages, Mr. Loeb provided the hedge fund manager with what he called "tiddie biddies" about some top technology firms, including Apple Inc. and Intel Corp. Investigators are also looking at the e-mails between technology analyst Henry King, and investment banker Matthew Korenberg, to determine whether confidential information was shared with people at Galleon, including Rajaratnam, according to the people. On 8/5/08, Mr. Loeb's e-mail requested that Mr. King, then Goldman's research chief in Taiwan,  send him an "update" on Intel.  Mr. King responded with an attached spreadsheet in an e-mail with the subject title, "u would not believe this." Insufficient Evidence? The day after Mr. Loeb's e-mail request, Mr. Loeb sent a message to Mr. Rajaratnam the next morning, which said, "need to reach u with some PARTICULARLY important data" before the market opened for the day.  On a call wiretapped by the FBI that same day, Mr. Loeb went through a series of numbers related to Intel's production that showed the chip maker was unexpectedly increasing production of certain products, according to a transcript of the call, creating potential for more demand and higher revenue toward a stock increase. Mr. Loeb prefaced the numbers with the fact that the figures weren't complete, to which Rajaratnam responded, "It's still a good number."  "It's still a f— good number, right," Mr. Loeb said – though there is no evidence that Mr. Loeb passed on confidential information in the the call or that Mr. Rajaratnam traded on it. As a result, neither Goldman nor its 3 employees have been accused of any wrongdoing, and evidence may not be sufficient to produce charges against them.  While both the firm and Mr. King declined to comment, Mr. Korenberg's lawyer said he believes no charges will result from the probe and denies that Mr. Korenberg ever tipped anyone.  A lawyer for Mr. Loeb, Frank Wohl, said the information Mr. Loeb passed to Mr. Rajaratnam wasn't material and couldn't be used to trade shares:

"It was not price-moving or a basis for buying or selling the stock."

In another e-mail... dated 8/21/08, Mr. King sent Mr. Loeb information about Apple products.  Similarly, there is no indication that the information was confidential or whether Mr. King knew how Mr. Loeb intended to use it. The next day, in a phone call, which was also wiretapped by the FBI, Mr. Loeb told Rajaratnam he had information on Apple.  "This is production data, but it's directly from Apple and it's been pretty good on the production side," he said on the call, according to a transcript.  To date, investigators have not been able to identify what production data Mr. Loeb was referring to. How the Trial of Mr. Gupta Factors In. Federal investigators have supporters in both the prosecutors and defense attorneys of Mr. Gupta's trial.  During Mr. Gupta's trial, defense attorneys first entered the e-mails and wiretapped information to draw blame away from their client.  Although Judge Jed Rakoff prevented Mr. Gupta's lawyers from sharing the information with jurors, their contention that the Intel information was confidential could implicate Mr. Loeb. Likewise, prosecutors publicly asserted outside the presence of the jury that Mr. Loeb provided information about Intel, Apple, and Hewlett-Packard Co. to Rajaratnam.  In addition, they said that confidential information Mr. Loeb provided to Rajaratnam came from Mr. King. A Smoking Gun? In the wiretapped call to Mr. Rajaratnam's cellphone on 8/7/08, discussing Intel, Mr. Loeb, according to a transcript, said: "This goes to you and Adam only," referring to former Galleon trader Adam Smith, who pled guilty to criminal charges and has agreed to cooperate with the government in its investigation. Rajaratnam: "Yeah.  No, absolutely not, I don't talk to anybody." Mr. Loeb: "Yeah.  And then, you know, I tell a couple of guys on the Street but you guys get the first call and that's it." For further details, go to [Dealbook, 6/22/12].