In a blow to former Goldman Sachs director, Mr Rajat Gupta, in insider trading case, a US court has rejected his bid and motion to suppress wiretap evidence at his trial and dismiss some criminal counts.
In a ruling on various pre-trial motions, US District Judge, Mr Jed Rakoff, said secretly recorded telephone calls between Gupta and hedge fund founder Raj Rajaratnam can be played during his trial, scheduled to begin from May 21.
63-year-old Gupta, who has pleaded not guilty to the charges, had sought to suppress the wiretap intercepts and the evidence derived from it from being introduced at his criminal trial.
Mr Rakoff said the telephone conversations that would be played at Mr Gupta’s trial are the same that were used during last year’s trial of Rajaratnam, who is currently serving an 11-year prison sentence after being convicted of insider trading charges.
Mr Rajaratnam too had challenged the use of wiretaps evidence at his trial but the judge overseeing his case had struck down his bid to suppress the wiretaps.
“Gupta offers no arguments different from the arguments considered in the Rajaratnam case. Gupta argues that insider trading is not an offense as to which wiretapping is authorised.
“So long as the Government acts in good faith with respect to informing the Court of the crimes it is investigating and learning of in connection with the wiretaps, the Government is free to use evidence obtained from an authorised wiretap in the prosecution of a crime,” Mr Rakoff ruled.