In the Raj trial, jurors heard a wiretapped call between government witness and former Galleon trader Adam Smith and then-Galleon employee Ian Horowitz. It’s the first wiretapped call that the government didn’t want broadcast across the courtroom, and the defence did.
Adam Smith is currently testifying in the trial, and alleges that Raj encouraged garnering non-public, material information from sources within public companies.
Raj’s defence accused Smith of “fabricating his illegal conduct at Galleon in order to secure a lesser sentence by helping them get “the big fish” — Mr. Rajaratnam,” according to Dealbook.
This time, it was the defence’s turn to play a wiretapped conversation for the jurors. On the call, Smith — who was already a cooperating witness at the time — tries to get Horowitz to admit that Galleon traded on insider information with regard to a company called Starent. Horowitz doesn’t take the bait.
The defence emphasises Smith’s contradictory stance on the witness stand, as opposed to what he says on the phone call — which is that Galleon didn’t do anything wrong. The government argues that Smith was under instruction not to be antagonistic if it didn’t look like he was going to get anything from him.
Listen to the call: