In January the NYT reported that former Goldman Sachs director Rajat Gupta’s lawyers were going to try to save him by arguing that wire-tapped conversations should not be used as evidence in his trial.
See, those wire-taps were part of what sealed the deal for Rajat’s alleged accomplice, convicted insider trader and former Galleon Group head, hedge funder Raj Rajaratnam.
Since those conversations damned Raj, some think that it follows that they would damn Rajat too.
And now it looks like they will be used as evidence. Reuters reports that Judge Rakoff ruled that using the wire taps was valid because “insider trading cannot often be detected, let along successfully prosecuted, without the aid of wiretaps.”