A lawyer for former Goldman Sachs board member Rajat Gupta claimed that a person, who has not been identified or charged in a broad US insider-trading probe, was caught on a wiretap leaking secrets about Intel and Apple.
According to Reuters, lawyer Gary Naftalis told a pre-trial hearing that the Goldman person leaked confidential information about the two companies to Raj Rajaratnam, the Galleon Group hedge fund founder convicted of insider-trading last year.
Gupta denies criminal charges that he tipped Rajaratnam with Goldman Sachs and Procter & Gamble secrets between 2007 and 2009.
It seems there was someone inside of Goldman Sachs who provided confidential information to Raj Rajaratnam about Apple and Intel. Naftalis said that there was wiretap evidence to prove it.
Naftalis told US District Judge Jed Rakoff there was a more circumstantial case that that person should be sitting in the box rather than Gupta.
Gupta's defence is that the charges brought by US prosecutors last October are circumstantial and that Rajaratnam had a host of sources tipping him with information.
Rajaratnam was convicted on the basis of wiretaps, which traditionally have been used in organised crime and narcotics cases, not white collar investigations.
Rajaratnam was once a friend of Gupta's, and is serving an 11 year prison sentence. Gupta was at one time global head of McKinsey and sat on the boards of several companies.