Bernard Madoff’s former personal secretary is among five of the con man’s ex-employees who will be the first to face a jury in a criminal trial for their alleged roles in carrying out the world’s biggest Ponzi scheme.
A second Goldman Sachs Group Inc. employee is under investigation for passing illegal tips to Galleon Group LLC co-founder Raj Rajaratnam, a lawyer for former Goldman Sachs Director Rajat Gupta said in court today.
Richard “Rick” Schutte , the ex- president of hedge-fund company Galleon Group LLC, sparred with a prosecutor at the insider-trading trial of Raj Rajaratnam over the nature of competition, pressure and investor expectations.
Ali Far, a former Galleon Group LLC fund manager, was spared a prison sentence after giving prosecutors “substantial assistance” by secretly recording conversations with the fund’s co-founder Raj Rajaratnam and three other insider traders.
Rajiv Goel, the former Wharton classmate of Raj Rajaratnam who testified against the Galleon Group LLC co-founder, was sentenced to probation for his role in the biggest hedge fund insider-trading scandal in U.S. history.
A prosecutor in the insider-trading trial of Rajat Gupta used his questioning of a defense witness to attack the ex-Goldman Sachs Group Inc. director’s claim that another bank executive was the source of illegal tips.
David Slaine had a secret for the FBI that summer day, one of scores he would eventually reveal in his role as a dream informant. The subject was Teterboro Airport. Slaine claimed a money manager he knew was using it to profit quietly on trades of health-care stocks.
Lloyd Blankfein, chief executive officer of Goldman Sachs Group Inc., told jurors that Rajat Gupta wasn’t authorized while he was a board member to disclose the bank’s earnings to outsiders before the public announcement.
Galleon Group LLC co-founder Raj Rajaratnam’s conviction for directing the most extensive insider-trading scheme in U.S. history was upheld by an appeals court, which ruled the government’s use of wiretaps was proper.