[ by Melanie Gretchen ] Rajat Gupta's defense strategy has hinged on there being other Goldman insiders who shared information with ex-Galleon hedge-fund manager Raj Rajaratnam. In the latest development, both sides now have turned to David Loeb, a senior Goldman salesman, whom prosecutors publicly acknowledged provided information about Intel Corp., Apple Inc., and Hewlett-Packard Co. to Galleon Group founder Rajaratnam - following his conviction last June, Rajaratnam now serving 11 years in prison for insider trading. What Are the Chances? To recap, Mr. Gupta stands accused by federal prosecutors of leaking corporate secrets to Mr. Rajaratnam when Mr. Gupta was on the boards of Goldman and Procter & Gamble, because of his relationship and mutual business interests with the former hedge fund manager.  Gupta pled not guilty to charges of conspiracy and securities fraud, and his lawyers repeatedly have said that prosecutors "have the wrong man." As far as Mr. Loeb is concerned, prosecutors said the analyst didn't have access to the confidential information about Goldman that Mr. Gupta is accused of providing, and thus could not have been the tipster.  Asst U.S. Attorney Reed Brodsky added: "There is no evidence, zero, none from the government and none from the defense in any way, shape or form that Mr. Loeb had access to material nonpublic information" about Goldman. Accordingly, prosecutors continue to contend that Mr. Gupta was the one who tipped Rajaratnam about Goldman's earnings and the $5 billion investment by Berkshire Hathaway Chief, Warren Buffett, before those events were announced to the public. Changing the Game. Going forward, Gupta lawyer, Gary Naftalis, reiterated that "We're going to have a lot to say about David Loeb."  Previously, lawyers for the former P&G board member had raised the possibility that other Goldman employees may have provided confidential information to Rajaratnam. Loeb Under Investigation. Following up on all that's been said or intimated about Loeb, 41, who's based in Los Angeles, investigations are currently underway into suspected instances where Mr. Loeb may have provided inside tips to others - information he might have received from an Asia-based analyst who covered the personal-computer supply chain.  In each instance, it's believed that Loeb provided such information to Rajaratnam and probably others, according to people familiar with the matter. It's particularly relevant that Galleon was one of Mr. Loeb's hedge-fund clients.  The analyst who provided the original tips apparently is also on leave, and under investigation.  However, neither he nor Mr. Loeb have been charged criminally. Top Secret Deal. Byron Trott, the former vice chairman of Goldman's global investment bank, described to jurors how he helped broker a deal for Warren Buffett's Berkshire Hathaway to invest $5 billion in the bank at the height of the financial crisis in 2008.  Mr. Buffett agreed to act as a cornerstone investor and provide $5 billion in capital to Goldman after a conversation that lasted somewhere between 10 minutes and 20 minutes on the morning of Sept. 23, 2008, Mr. Trott said.  "This was about as top secret as you can get." Who Knew and Who Didn't. Only to a limited number of senior executives at Goldman knew about the deal before it was presented to the board later that afternoon and announced after the close of the markets that day, Mr. Trott said. Through tips, Galleon made nearly $1 million trading ahead of the deal, prosecutors have said.  But Ananth Muniyappa, a junior trader at Galleon, testified earlier that not everyone was so lucky: Galleon portfolio manager Leon Shaulov, who bet big against the financial sector, was angry after he learned Mr. Rajaratnam bought Goldman shares before the announcement. He sent in an email, shown in court, to Galleon co-founder Gary Rosenbach, who read it out: "Thx for the heads up btw.  Not one word from anyone.  Thanks very much.  What I give vs what I get back is disgusting."  It ended with two curse words.  The next morning, Mr. Rosenbach sent an e-mail, shown in court, to Mr. Rajaratnam, which read, "I spoke to Leon and I believe I [defused] him." Mr. Rosenbach hasn't been charged, either. For further details, go to [WSJ, 5/24/12].