Ex-Goldman's Gupta Challenges U.S. Use of Wiretaps in Insider Appeal

Former Goldman Sachs director Rajat Gupta is set to ask a federal appeals court in New York Tuesday to overturn his insider-trading conviction by arguing the U.S. shouldn’t have been allowed to use evidence from wiretapped phone calls that didn’t involve him.

Bloomberg reports that Gupta has already been handed one victory from the 2nd Circuit Court of Appeals, which will hear the arguments.

In December, it allowed him to remain free while he fought his conviction. The court had overturned U.S. District Judge Jed Rakoff’s ruling ordering Gupta to surrender to prison authorities on January 8th and begin serving his two-year sentence.

Rajat Gupta, 64, who was a managing partner at McKinsey & Co., and a director at Procter & Gamble Co., was convicted by a jury in June of one count of conspiracy and three counts of securities fraud. He was accused of passing illegal information about New York-based Goldman Sachs to Galleon Group co-founder Raj Rajaratnam, his friend and business partner.

'The prosecution’s case rested exclusively on circumstantial evidence, and predominantly on wiretap statements - not of Gupta, but of Rajaratnam, a highly unreliable declarant, speaking with other people with no connection to Gupta', Seth Waxman and Gary Naftalis, Gupta’s lawyers said in a brief to the appeals court.

Hit the link below to access the complete Bloomberg article:

Gupta Challenges U.S. Use of Wiretaps in Insider Appeal

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