GASPARINO: Government Might Be Screwed, As Raj Has A Good Shot Of Winning Appeal

Charlie Gasparino

Charlie Gasparino of makes the case that Raj Rajaratnam might have a decent shot at winning on appeal, based o the manner in which the government obtained the wiretaps, an issue that’s been a potential pitfall for the government all day.

He writes:

Federal Judge Richard Holwell said it was “particularly disturbing” that government prosecutors left out of application the past criminal records of one of the informants who was recorded providing¬† Rajaratnum with insider tips.¬†

And the judge didn’t stop there. Holwell called it a “glaring omission” for federal prosecutors to omit from the application the fact that Rajaratnam had been subject of a past investigation by the Securities and Exchange Commission, where he gave a deposition and generated documents and testimony from other witnesses.

The problem for the government, according to people close to the defence, is that in order to obtain a wiretap, prosecutors and agents in the FBI must show that they’ve exhausted other investigatory methods to make their case. Howell said by leaving out these details, there is a “substantial preliminary showing that the government recklessly or knowingly made a misleading statement or omission.”

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