Rajat Gupta Challenges Hedge Fund Insider Trading Conviction, Chiesi Released

a_560x3751-300x204New York (HedgeCo.Net) – Ex-Goldman executive Rajat Gupta’s lawyers have requested a re-trial regarding his conviction in last year’s billion dollar hedge fund scandal.

“Defense lawyer Seth Waxman told the 2nd U.S. Circuit Court of Appeals in New York that wiretaps played for the jury were inadmissible because they amounted to hearsay evidence. Gupta himself was not heard on the wiretaps, which are instead conversations between convicted Galleon Group manager Raj Rajaratnam and other employees at the hedge fund.” The Chicago Tribune reports.

Gupta received a prison sentence of 2 years in federal prison in October 2012. He was accused of conspiracy and securities fraud crimes stemming from his involvement in an insider trading scheme with his business partner and friend, Rajaratnam, the founder and former head of the Galleon Group hedge fund.

In other news regarding the Galleon case, Reuters reports that Danielle Chiesi was released from prison early and is currently staying in a half-way house in the Bronx after completing 15 months out of her 30 month sentence at Federal Prison (a.k.a. “Camp Cupcake”).

Chiesi was accused of receiving insider information from Robert Moffat, Jr., who also pleaded guilty in the Galleon hedge fund fraud scheme.

Alex Akesson
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