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Jury Out In Goldman Secrets Trial

posted: 11 months ago

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The jury weighing insider-trading charges against former Goldman Sachs director Rajat Gupta finished its first day of deliberations Thursday in Manhattan federal court without reaching a verdict.

Bloomberg reports that deliberations are scheduled to resume Friday.

Gupta, 63, who ran McKinsey & Co. from 1994 to 2003, is accused of leaking secret tips to Galleon Group co-founder Raj Rajaratnam about New York-based Goldman Sachs and Cincinnati-based Procter & Gamble. Gupta left the Goldman Sachs board in 2010 and the P&G board last year.

And Reuters reports that jurors have asked for transcripts of a stock trader's testimony and clarification of the conspiracy charge.

The jury, among them a retired librarian, a nonprofit organization executive and a school counselor, is to decide on five charges of securities fraud and one charge of conspiracy. The most serious count against him carries a maximum prison sentence of 20 years.

The news agency has also reported that a prosecutor told jurors at the trial's close on Wednesday that the evidence in the insider-trading case against Gupta is 'overwhelming'.

Gupta's lawyers argued the defendant had no reason to illegally leak information to Rajaratnam and that the government's case is circumstantial.

 

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