WSJ – A federal judge, in an opinion made public Tuesday, said that prosecutors can play at Rajat Gupta’s insider-trading trial secretly recorded phone calls captured from the cellular phone of Raj Rajaratnam, a hedge-fund manager he alleged tipped. The phone calls were previously allowed into Rajaratnam’s criminal trial last year by former U.S. District Judge Richard Holwell.
Gupta, a former director at Goldman Sachs Group and Procter & Gamble had argued in part that federal law doesn’t allow wiretaps to be used “in investigations of suspected insider trading” and the wiretaps never should have been allowed into Rajaratnam’s case because they were improperly obtained. Gupta has denied wrongdoing.
