Lisa Chow is the economics reporter at WNYC. She tries to explore in her stories surprising aspects of New York’s many economies—in plain view or hidden, in neighborhoods or sectors.
As the largest hedge fund insider trading trial in U.S. history enters its fifth week, prosecutors have called 14 witnesses and played 40 wiretapped telephone conversations in the case against Galleon Group founder founder Raj Rajaratnam, who is accused of trading stocks and making tens of millions of dollars in illegal profits based on private information he gathered from friends.
Prosecutors said the hedge fund boss got a tip from former Goldman Sachs board member Rajat Gupta — who faces action by the U.S. Securities and Exchange Commission though he denied wrongdoing — in October 2008.
"I heard yesterday from somebody who's on the board of Goldman Sachs that they're going to lose $2 per share. The street has them making $2.50," Rajaratnam tells David Lau, a Galleon employee.
"Really?" Lau responds.
"Yeah," Rajaratnam says.
Defense lawyers have argued that Rajaratnam only traded stocks using legitimate analysis and research.
You can hear the full excerpt of the wiretapped conversation between Rajaratnam and Lau here. (Audio contains graphic language)