Lawyers for Goldman Sachs's former director Rajat Gupta, on trial for inside trading, have suggested that leaks from the bank to convicted hedge fund billionaire Raj Rajaratnam came from other sources and not Gupta.
As Joseph Yanagisawa, who works in Goldman Sachs's technology unit, Wednesday testified about records of phone calls between Gupta's office and Chief Executive Officer Lloyd Blankfein's office, defence lawyer David Frankel confronted him with the logs of another executive.
The logs showed more than two dozen calls between phones associated with David Loeb, Goldman Sachs's head of Asia Equity Sales in New York, and Galleon Group co-founder Rajaratnam and others at Galleon.
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These included calls from Loeb's phones to numbers associated with Rajaratnam and Galleon trader Adam Smith on dates when Gupta is alleged to have tipped Rajaratnam, bolstering a defence claim that it was Loeb or others who leaked data.
Prosecutors say that within seconds of hanging up from the board meeting on September 23, 2008, Gupta tipped Rajaratnam at around 3.55 p.m. about Berkshire Hathaway's $5 billion investment in Goldman Sachs.