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NEW YORK (AP) -- The July 29, 2008, phone call between two titansof Wall Street began with the old friends exchanging mildpleasantries, but then quickly turned serious and - by thegovernment's account - criminal. Hedge fund manager Raj Rajaratnam asked about a rumor that GoldmanSachs "might look to buy a commercial bank." On the other end ofthe phone, then-widely respected Goldman board member Rajat Guptaconfided there was a "big discussion" on the subject at a recentmeeting. Prosecutors will try to convince a jury that the intercepted callshows Gupta was providing inside tips that gave Rajaratnam anillegal edge in massive stock maneuvers. Defense lawyers saythey'll argue Gupta was a straight-shooter who only shared publicinformation with the billionaire hedge fund boss, as devoted toraising money for charity as to Goldman's bottom line. Jury selection is scheduled to begin Monday in federal court inManhattan. The trial is scheduled to last up to four weeks. The same 24-minute phone call that's central to the Gupta casehelped convict Rajaratnam - a former multibillionaire born in SriLanka - last year in the same courthouse. The Galleon founder isserving an 11-year prison sentence, the longest ever given in aninsider trading case. Rajaratnam has been the biggest catch so far in a wide-ranginginsider-trading investigation by U.S. Attorney Preet Bharara that'sresulted in more than two dozen prosecutions of white collardefendants. But based on Gupta's standing in the world of finance,his trial could draw more attention - and a potential convictioncould resonate farther. Aside from his role at Goldman Sachs, the Indian-born Gupta is theformer chief of McKinsey & Co., a highly regarded global consultingfirm that zealously guards its reputation for discretion andintegrity. Gupta, 63, is also a former director of the huge consumer productscompany Procter & Gamble Co., a pillar of American industry and oneof the 30 companies that make up the Dow Jones industrial average.P&G owns many well-known brands including Bounty, Tide andPringles. The Westport, Conn., resident has pleaded not guilty to one countof conspiracy to commit securities fraud and five counts ofsecurities fraud, charges that carry a potential penalty of 105years in prison. He remains free on $10 million bail. Prosecutors in effect previewed their case against Gupta at theRajaratnam trial. Jurors heard testimony that at an Oct. 23, 2008, Goldman boardmeeting, members were told that the investment bank was facing aquarterly loss for the first time since it had gone public in 1999. Prosecutors produced phone records that they said show Gupta calledRajaratnam 23 seconds after the meeting ended, causing Rajaratnamto sell his entire position in Goldman the next morning and savemillions of dollars. Rajaratnam also earned close to $1 million when Gupta told him thatGoldman had received an offer from Warren Buffett's BerkshireHathaway to invest $5 billion in the banking giant, prosecutorssaid. Also played at trial was the tape of Rajaratnam grilling Guptaabout whether the Goldman Sachs board had discussed acquiringWachovia or an insurance company. "Have you heard anything along that line?" Rajaratnam asked Gupta. "Yeah," Gupta responded. "This was a big discussion at the boardmeeting." Prosecutors sought to maximize the impact of the Gupta tape bycalling Goldman Sachs chairman Lloyd Blankfein to testify that thephone call violated the investment bank's confidentiality policies.Prosecutors say Blankfein will return to the stand at Gupta'strial. At a recent hearing, Gupta's lawyers argued that the jury wouldneed to hear more about their client's life story to give theallegations context. "He's done all these wonderful things. And they would say that oneday out of a clear blue sky in the seventh decade of his life, hedecides to become a criminal," said attorney Gary Naftalis. The judge ruled that Gupta's charitable works could be referenced,but only if he testified. Naftalis refused to divulge whether hewill. Gupta's reputation for giving wasn't lost on Rajaratnam. Near theclose of their recorded phone call, the crooked hedge fund managerremarked, "You've been spending a fair amount of time doingcharity." "Yeah," was Gupta's only response. --- Associated Press writer Larry Neumeister contributed to thisreport. 2012 The Associated Press . All rights reserved. This material may not be published,broadcast, rewritten or redistributed. Learn more about our Privacy Policy and Terms of Use . I am an expert from inflatable-advertisingballoon.com, while we provides the quality product, such as Helium Zeppelin , China Cube Balloon, Cube Balloon,and more.
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