Jury heard today that Rajat Gupta was a 15 percent owner of one of Galleon Group’s hedge funds
Former Goldman Sachs director Rajat Gupta was a 15 percent owner of one of Galleon Group’s hedge funds, a Manhattan federal court jury heard today.
JPMorgan private wealth manager Heather Webster testified that her former client was chairman and part owner of hedge fund Galleon International — further bolstering the government’s theory for why Gupta might have provided illegal inside information to the fund’s founder Raj Rajaratnam.
On Thursday, a second government witness testified that Rajaratnam named Gupta chairman of the hedge fund a few day before he went on a fundraising jaunt to the Middle East with one of Galleon’s marketers.
This morning, ending the second week of the closely watched trial, Webster read from notes she gathered during an April 2008 meeting at Gupta’s Connecticut mansion. Meeting with Gupta, his wife, Anita, and three of their daughters, Webster discussed the executive’s financial plans.
The notes, combined with other evidence presented by prosecutors, suggest that Gupta was seeking to springboard his connections — following his retirement from McKinsey, the global consulting firm he headed — into a career in finance.
Gupta once asked for the contacts of people he met during their Middle East trip for Galleon because he wanted to discuss with them a telecom fund he was launching, a Galleon marketer had testified.
Gupta was also involved with New Silk Route, a $1.4 billion private-equity firm, which he also discussed with Webster.
Webster’s notes had Gupta’s personal net worth pegged at $84 million, along with an irrevocable trust worth $38.5 million and cash on hand of $11.2 million.
The government will next be calling to the stand Anil Kumar, Gupta’s protégé at McKinsey who has pleaded guilty to insider trading with Rajaratnam, who is serving 11 years in federal prison.
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