New York, Nov 19: The Goldman Sachs President, Mr Gary Cohn, could be asked to depose in the insider trading case against the bank’s former director Indian-American Rajat Gupta. Mr Cohn’s name as well as that of Goldman employee Mr David Loeb emerged at a hearing here yesterday before US District Judge Mr Jed Rakoff. During the hearing in a Manhattan court, federal prosecutors and Mr Gupta’s lawyers debated the timing of depositions that are set to be taken in a civil case being brought against Mr Gupta by the Securities and Exchange Commission. At the hearing, Mr Rakoff said he would release a more complete list of potential witnesses on Monday. Mr Cohn’s connection in the case emerged during the trial of Galleon founder Mr Raj Rajaratnam, who has been sentenced to 11 years in prison on insider trading charges. During the trial, prosecutors presented evidence that showed Mr Rajaratnam had met Mr Cohn and Mr Loeb in July 2008.
They also played a recording of a conversation between Mr Rajaratnam and Mr Gupta during which the Sri Lankan born hedge fund founder told Mr Gupta that he had a lunch scheduled with Mr Cohn later in the week and him about a rumour that Goldman might look to buy a commercial bank. Mr Gupta has been charged with passing on to Mr Rajaratnam confidential information he received as board member of Goldman Sachs and Procter & Gamble. A trial is scheduled for April 2012. He also faces a civil lawsuit slapped by the SEC.
Goldman’s chief executive Mr Lloyd Blankfein had testified in March at Mr Rajaratnam’s trial about Mr Gupta’s role on the board and the secret information he had access to, including Mr Warren Buffett’s $5 billion investment in the bank during the height of the financial crisis.
They also played a recording of a conversation between Mr Rajaratnam and Mr Gupta during which the Sri Lankan born hedge fund founder told Mr Gupta that he had a lunch scheduled with Mr Cohn later in the week and him about a rumour that Goldman might look to buy a commercial bank. Mr Gupta has been charged with passing on to Mr Rajaratnam confidential information he received as board member of Goldman Sachs and Procter & Gamble. A trial is scheduled for April 2012. He also faces a civil lawsuit slapped by the SEC.
Goldman’s chief executive Mr Lloyd Blankfein had testified in March at Mr Rajaratnam’s trial about Mr Gupta’s role on the board and the secret information he had access to, including Mr Warren Buffett’s $5 billion investment in the bank during the height of the financial crisis.