Defense attorney Seth Waxman hammered two key arguments before the three-judge panel of the U.S. Court of Appeals. His objective was to have overturned Rajap Gupta's conviction for insider trading
As BLOOMBERG reports, Waxman pointed out that the playing of wire-tapped conversations in which Gupta did not participate should not have permitted in the trial. The jury heard them which constituted, some say, only circumstantial evidence. In addition, Waxman objected that the testimony of Gupta's daughter was not allowed at the trial. Two days before the supposed giving off of insider information to Raj Rajaratnam, head of Galleon Group, he told his daughter that Rajaratman, as his investment partner, has secretly withdrawn $25 million from their account. In the reporting by BLOOMBERG, this is referred to as a "swindle." Had that testimony been permitted there might have been a question raised in jurors' minds about Gupta's passing of nonpublic information to his now-enemy. Why would he aid the man who had swindled him?
The Gupta saga remains compelling. This one-hour presentation by the defense makes us wonder if Gupta had been dragged into the sting because, at the time, he was the highest-status fish. Now, of course, that space belongs to Steve Cohen, head of SAC hedge fund, who has been called into the Grand Jury.