‘Rajat Gupta’s conviction does
not mean the end of the Indian
story in America’
LUCAS JACKSON/ REUTERS
Galleon hedge fund founder Raj Rajaratnam, center, was convicted on 14 fraud and conspiracy counts over a $63.8 million insider trading scheme.
ship between his client and Rajaratnam had soured at the
time of the alleged tipping, that Gupta had lost over $10 mil-
lion invested in a business with Rajaratnam.
Spectators sitting in the gallery of the courtroom found it
difficult to believe those claims.
If that was true, people wondered, why didn’t Gupta sue
Rajaratnam and why after the dispute between the two
started in the fall of 2008 did Gupta continue to keep in
touch with Rajaratnam even lobbing a solicitous call to him
in October when the markets were in freefall?
At one point, Goldman’s lawyers asked Gupta to disclose
the name of the lawyer that he had retained to sue
Rajaratnam over the investment loss. But the lawyers never
received the name.
After the trial was over Rajaratnam talked about how he
was ‘betrayed.’ You quote him telling Newsweek, ‘The
Americans stood their ground. Every bloody Indian cooper-
That is not entirely true.
One of Rajaratnam’s protégés, Adam Smith. who had
been carefully groomed by Rajaratnam during his time at
Galleon, cooperated and testified against at his trial.
But Rajaratnam was never one to let the facts get in the
way of a good story.