Thursday, February 11, 2010

Galleon Watch – 02/11/10 Update

There have been a few developments in the Galleon case over the past couple of weeks – more chips are falling, and the tapes of the wiretapped conversations are being called into question.

On February 8th, the New York Times reported that Rajiv Goel, formerly an executive at Intel, pleaded guilty to providing confidential information to Raj Rajaratnam. Goel is cooperating with prosecutors. He is the tenth guilty plea in the case.

With Goel’s plea on the books, Bob Moffat (formerly of IBM) is the only outstanding defendant (of the six) from the original complaint whose plea is still open. Meanwhile, the New York Times reported on February 9th, that allegations from Goel, Kumar and Kurland have led to additional charges against Rajaratnam.

The tapes of the wiretapped conversations could become a key turning point in this case. Lawyers for Rajaratnam are attempting to suppress the wiretap evidence in the criminal case.

The tapes have also come into play in the related civil complaint from the SEC. Tapes of the wiretapped conversations were accidentally turned over to the SEC from federal prosecutors and later returned. On February 9th, the New York Times reported that the defendants were then ordered to turn over the tapes to the SEC, following an argument to suppress this evidence in the civil case.

For prior installments of the Galleon Watch click here.

No comments: