Last Updated: 11:48 PM, June 8, 2012
Posted: 11:08 PM, June 8, 2012
Former Goldman Sachs Group director Rajat Gupta will probably testify at his insider-trading trial, his lawyer told the judge after the prosecution rested and the defense began presenting its case.
“I can say that it’s highly likely that my client will testify,” Gary Naftalis, Gupta’s lawyer, told US District Judge Jed Rakoff yesterday.
The announcement came after jurors left for the day and Rakoff was pressing defense lawyers about their schedule and witness lineup. The judge also rejected a defense motion to dismiss the charges.
Gupta, who ran McKinsey & Co. from 1994 to 2003, is accused of leaking secret tips to Raj Rajaratnam, co-founder of hedge-fund company Galleon Group LLC, about Goldman Sachs and Procter & Gamble, where Gupta also served as a director.
Tips in question involve earnings in the first quarter of 2007 and fourth quarter of 2008.
Another involves a $5 billion Berkshire Hathaway investment in Goldman Sachs on Sept. 23, 2008, days after the collapse of Lehman Brothers. Prosecutors also say Gupta told Rajaratnam that Cincinnati-based P&G planned to sell Folgers Coffee to J.M. Smucker.
“Now that we know the defendant is very likely to take the stand, is he last?” Rakoff asked.
“He would be at the end,” Naftalis said.