Raj Rajaratnam reportedly begged the SEC not to charge Raj Gupta with insider trading.
On February 28th, days before the SEC announced their charges against the former Goldman board member, Raj apparently filed a claim requesting the SEC to wait until after his case was finished.
Raj allegedly believed that the charges against Gupta would result in negative press (it did) and would significantly damage his defence (there’s strong evidence to suggest he’s right).
Raj apparently also gave the SEC “powerful evidence” that supports Gupta’s claim that the charges against him are false.
Obviously the SEC pressed ahead anyway, and now we know that investigators believe that Gupta and Raj spoke just minutes after Gupta heard from Blankfein detailed information that would affect Goldman’s future performance. And a former Galleon employee says that Raj had Goldman’s numbers before they were released to the public and that the firm traded on the information.
Now the big question is, what is the “powerful evidence” that Raj supplied the SEC with? We’re dying to know how Gupta could possibly explain these calls.