In February 2012, the government unveiled a new indictment: Peter Lattman, “New Charges Filed in Insider Trading Case Against Ex-Goldman Director,” New York Times, February 1, 2012.
The new indictment charged that in March 2007 Gupta called in to a Goldman audit committee meeting: US v. Gupta, S 1 11 Cr. 907 (JSR), Superseding indictment, February 1, 2012.
Gupta recommended each of Zainulbhai’s children for the University of Chicago: Adil Zainulbhai letter written on behalf of Gupta before his sentencing.
“During these times, you get to know your real friends”: Copy of email sent by Rajat K. Gupta (hereafter Gupta email) to friends, May 18, 2012.
On May 16, federal judge Rakoff said he would allow three wiretaps: Peter Lattman, “Judge May Permit Wiretaps as Evidence in Insider Case,” Dealbook, May 16, 2012.
“Today is Friday, May 18th”: Gupta email.
The SEC civil case filed in federal court on October 26, 2011: See http://www.sec.gov/litigation/litreleases/2011/lr22140.htm.
Rakoff’s indomitable presence in the courtroom: First reported in “Judge Rakoff: A Hot Bench,” Economist, June 9, 2012.
“You look so much taller than Napoleon”: US v. Gupta, Judge Rakoff, May 21, 2012.
Brodsky dubbed Napoleon by the Wall Street Journal: Reed Albergotti, “Napoleon of Courtroom Next Takes on Gupta,” Wall Street Journal, May 21, 2012.
“Your Honor, just to be clear, he won’t mention AIDS, malaria or tuberculosis” and the subsequent exchange: US v. Gupta, Reed Brodsky, May 21, 2012.
In 2009, Judge Rakoff presided over the wedding of one of Naftalis’s sons: Azam Ahmed, “A Litigator Known as Colombo with a Law Degree,” Dealbook, October 27, 2011.
Rakoff’s representation of Martin Siegel and his crime: Chronicled in James Stewart, Den of Thieves (London: Simon & Schuster, 1991), 416–23.
The composition of the Gupta jury: Peter Lattman, “Jury Is Seated in Rajat Gupta Trial,” Dealbook, May 21, 2012.
“This is a case about illegal insider trading” and following remarks by Brodsky: US v. Gupta, Reed Brodsky opening argument, May 21, 2012.
The government was offering a “cropped photo” of Gupta: US v. Gupta, Gary Naftalis opening argument, May 21, 2012.
Caryn Eisenberg’s list of VIP callers: US v. Gupta, Government Exhibit 2300, List of important callers from page 2 of Eisenberg’s notebook.
Eisenberg’s testimony of the events on September 23, 2008: US v. Gupta, Testimony of Caryn Eisenberg, May 22, 2012.
Loeb was under investigation for passing information on Intel, Apple, and Hewlett-Packard: Patricia Hurtado and David Glovin, “Goldman’s David Loeb Passed Tip to Rajaratnam, US Says,” Bloomberg, May 23, 2012, quotes prosecutor Reed Brodsky as saying Loeb passed information on these three stocks.
He was “extremely friendly”: US v. Gupta, Eisenberg testimony, May 22, 2012.
Ananth Muniyappa took the stand wearing a plaid shirt: Peter Lattman, “Rajaratnam’s Goldman Trade a Focus at Gupta Trial,” Dealbook, May 23, 2012.
Naftalis’s exchange with Judge Rakoff about Buffett: Sidebar between lawyers in US v. Gupta, Trott testimony, May 23, 2012.
George’s testimony that Goldman was losing money: US v. Gupta, Testimony of William George, May 25, 2012.
Heather Webster’s notes: US v. Gupta, Government Exhibit 5516, Webster’s contemporaneous notes of her meeting with Rajat Gupta and his wife at their Westport home on April 23, 2008.
Kumar testimony on Gupta’s $10 million loss in Voyager: US v. Gupta, Testimony of Anil Kumar, June 4, 2012.
Told the government that Gupta said Rajaratnam had not kept a straight book: Ibid.
Paris Hilton had arrived for a settlement conference in a dispute with an Italian lingerie company: Peter Lattman, “Blankfein Takes the Stand in Insider Trading Case,” Dealbook, June 4, 2012.
“I am sure you want to hide the fact this witness is a lawyer”: US v. Gupta, Judge Rakoff during Testimony of Lloyd Blankfein, June 4, 2012.
The one area Blankfein shed new light on was Gupta’s conversations with KKR: Ibid.
His daughter was graduating from Fieldston: Lattman, “Blankfein Takes the Stand.”
“I am going to a restaurant in Yonkers”: US v. Gupta, Blankfein testimony, June 4, 2012.
Naftalis cross-examination of Blankfein: US v. Gupta, Blankfein testimony, June 7, 2012.
After the jury left, Naftalis said it was “highly likely” his client would testify: Kara Scannell, “Gupta Likely to Testify in His Own Defense,” Financial Times, June 8, 2012.
By Sunday, Gupta had decided against testifying: US v. Gupta, Letter from Naftalis to Judge Rakoff, June 10, 2012.
Geetanjali is a graduate of Harvard Law School and Harvard Business School and received a bachelor’s in applied math from Harvard College: Peter Lattman, “Gupta’s Daughter Testifies at His Insider Trading Trial,” Dealbook, June 12, 2012.
The weekend of September 21 at the Guptas: US v. Gupta, Testimony of Geetanjali Gupta, June 11, 2012.
Suprotik Basu’s call from a businessman “who wanted to end all childhood deaths from malaria” and his subsequent remarks: US v. Gupta, Testimony of Suprotik Basu, June 11, 2012.
“When you take leverage you know”: US v. Gupta, Defense Exhibit 4015-T, Transcript of a wiretapped conversation between Sanjay Santhanam and Raj Rajaratnam, October 2, 2008.
Internal Galleon document showing Rajaratnam took $25.2 million out of Voyager: US v. Gupta, Defense Exhibit 2105r, An analysis of Voyager.
Tarlowe’s summation: US v. Gupta, June 13, 2012.
“One of the unluckiest men in the world”: US v. Gupta, Brodsky, June 13, 2012.
Gupta “never did any insider trading” and remainder of Naftalis summation: US v. Gupta, Naftalis, June 13, 2012.
The note from juror number 6: US v. Gupta, Jury note 10, May 25, 2012.
Geetanjali was at the Starbucks: Email from Peter Lattman, New York Times, June 15, 2012.
“On Count 2…not guilty”: US v. Gupta, Transcript of verdict, June 15, 2012.
The man she knew did not emerge in the trial: Anita Gupta sentencing letter.
Chapter Thirty-Nine: A Family Secret
The summer between Gupta’s conviction and sentencing: Drawn from author interviews and sentencing letters.
His second daughter, Megha, spotted an unfamiliar look: Letter written by Megha Gupta on behalf of her father ahead of his sentencing.
“As I listened to the evidence”: Letter written by Purnendu Chatterjee on behalf of Gupta before Gupta’s sentencing.
The Gupta sentencing letters: Michael Rothfeld, “Dear Judge, Gupta Is a Good Man—Bill Gates, Kofi Annan Among Those Writing in Support of Inside Tipster Ahead of His Sentence,” Wall Street Journal, October 13, 2012.
Aman Kumar’s recollections of “Rajat uncle”: Letter written by Aman Kumar on behalf of Gupta ahead of his sentencing.
A week after the jury verdict, Gupta headed to Boston: Letter written by Geetanjali Gupta on behalf of her father ahead of his sentencing.
Goldman had advanced money to pay legal bills, which by the end of the trial amounted to $30 million: Peter Lattman, “Goldman Stuck with a Defense Tab, and Awaiting a Payback,” Dealbook, June 18, 2012.
But a week before his sentencing Gupta learned Goldman was seeking to recoup $7 million: Chad Bray, “Gupta Opposes Goldman’s Bid for Probe Reimbursement,” Wall Street Journal, October 22, 2012.
The slights faced by his third daughter, Aditi: Letter written by Aditi Gupta on behalf of her father ahead of his sentencing.
“I think it is fair to say Rajat Gupta’s life has been an extraordinary one” and subsequent remarks by Naftalis and Judge Rakoff: Sentencing of Rajat K. Gupta, October 24, 2012.
Remarks of Naftalis and Rakoff: Ibid.
“A great deal of sensation” has “prevailed over this case”: “Professor and Pupil’s Case, Defense Arguments Concluded,” Amrita Bazar Patrika, November 26, 1935.
The incident on April 9, 1935: “Professor and Pupil on Trial, Impersonation Charge, Incident at BA Examination Hall,” Amrita Bazar Patrika, May 9, 1935; “Story of False Mustache, Professor on Trial, Personation Charge at the B.A. Examination,” Amrita Bazar Patrika, June 1, 1935.
On December 4, 1935: “Professor Sentenced to Six Months R.I., Impersonation Case Judgment, Pupil Given Benefit of Doubt, Bail Granted by High Court,” Amrita Bazar Patrika, December 5, 1935.
In April 1936, his sentence was upheld by the Calcutta High Court: “Conviction Upheld by High Court, Professor’s Case, Echo of Impersonation in Exam Hall,” Amrita Bazar Patrika, April 23, 1936.
“The last eighteen months have been the most challenging” and subsequent remarks by Gupta: US v. Gupta, Gupta’s remarks at sentencing.
Rakoff’s sentence: US v. Gupta, Sentencing Memorandum and Order, October 24, 2012.
Afterword
Details of Rajaratnam’s surrender and new life in prison: Bob Van Voris, “Rajaratnam’s Prison Trades May Run from Postage Stamps to Mackerel Packets,” Bloomberg, December 5, 2011.
“The Americans stood their ground”: Suketu Mehta, “The Outsider,” Newsweek, October 23, 2011.
Millett’s remarks: US v Rajaratnam, 11-4416, US Court of Appeals for the Second Circuit, October 25, 2012.
“My ability to return to my prior”: US v Anil Kumar, 10-cr-13, Anil Kumar’s statement at his sentencing on July 19, 2012.
The incident with Baylor College: US v Kumar, Sentencing Memorandum submitted on behalf of Anil Kumar, footnote 5.
Kumar’s work for Max India: Ibid.
Goel’s troubles since his arrest: US v. Goel, No. 10 Cr. 90 (BSJ), Sentencing Memorandum on behalf of Rajiv Goel, September 7, 2012.
Whitman’s conviction on two counts of conspiracy: Patricia Hurtado and Bob Van Voris, “Whitman Capital Founder Guilty of Insider Trading,” Bloomberg, August 20, 2012.
Khan’s one-year prison sentence and Judge Rakoff’s remarks: Patricia Hurtado, “Roomy Khan Gets One Year in Prison in Insider Trading Case,” Bloomberg, January 31, 2013.
The bringing of civil and criminal charges against Mathew Martoma: Bob Van Voris and Patricia Hurtado, “Ex-SAC Manager Martoma Charged in Record Insider Scheme,” Bloomberg, November 20, 2012.
Bloomberg News reported that Martoma was born Ajai Mathew Mariamdani Thomas: Katherine Burton, Saijel Kishan, and Bob Van Voris, “Cohen’s ‘Elan Guy’ Martoma Dropped Ethics for Hedge Fund,” Bloomberg, November 23, 2012.
“He has stained the India story”: Email interview with Gurchuran Das, July 26, 2012.
The India Way: Peter Cappelli, Habir Singh, Jitendra Singh, and Michael Useem, The India Way: How India’s Top Business Leaders Are Revolutionizing Management (Boston: Harvard Business Press, 2010).
In order for Israel to be counted among the nations of the world, it has to have its own burglars and prostitutes: Variations of the quotation are widely attributed to the Jewish poet Chaim Nachman Bialik, though, without any source. Though some authors such as Donna Rosenthal have attributed the quote to Ben-Gurion without citing a source, it is more likely that if Ben-Gurion made the remark, he was drawing on Bialik.
Every store on Oak Tree Road is owned by an Indian-American: Monte Burke, “The Secret to Immigrant Entrepreneurial Success Can Be Found in Edison, NJ,” Forbes, June 25, 2012.
About the Author
Anita Raghavan was born in Malaysia but came to the United States in 1970. A graduate of the University of Pennsylvania, she spent eighteen years at the Wall Street Journal, where she won the Overseas Press Club award for her coverage of the mergers and acquisition boom in Europe, and the New York Press Club award for her reporting on the near death of the hedge fund Long-Term Capital. In 2008, she became the London bureau chief for Forbes. Currently she is a contributor to New York Times Dealbook and Forbes.
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Contents
Title Page
Welcome Page
Dedication
Epigraph
Cast of Characters
The Twice Blessed: Prologue
Part One: Discovery
Chapter One: “Who Will Show Me the Way in the World?”
Chapter Two: “I Respectfully Decline to Answer the Question”
Chapter Three: A Family Affair
Chapter Four: Drama at IIT
Chapter Five: Birdie Trades
Chapter Six: Promises to Keep
Chapter Seven: The Good Ship Galleon
Part Two: Rising
Chapter Eight: No Ask Backs
Chapter Nine: “The Tamil Tiger” of Wall Street
Chapter Ten: Up or Out at McKinsey
Chapter Eleven: The Camera Never Lies
Chapter Twelve: The Corner Office
Chapter Thirteen: Raj’s Edge
Chapter Fourteen: Building Offshore-istan
Chapter Fifteen: Partying and Polycom
Chapter Sixteen: Playing for Team USA
Chapter Seventeen: The Wharton Mafia
Chapter Eighteen: Reeling in Roomy
Part Three: Falling
Chapter Nineteen: Moonlighting at McKinsey
Chapter Twenty: A Vanaprastha on the Hudson
Chapter Twenty-One: The Dishonorable Dosco
Chapter Twenty-Two: On the New Silk Route
Chapter Twenty-Three: The Million-Dollar Man
Chapter Twenty-Four: “You’ve Gotta Be a Hustler”
Chapter Twenty-Five: The Richest Maid in Silicon Valley
Chapter Twenty-Six: The Wire
Chapter Twenty-Seven: “I Played Him Like a Finely Tuned Piano”
Chapter Twenty-Eight: A Friend on the Board
Chapter Twenty-Nine: A Tragic Call
Chapter Thirty: “Buy Goldman Sachs, Buy Goldman Sachs”
Chapter Thirty-One: Trading at the Setai
Chapter Thirty-Two: Handcuffs for Breakfast
Part Four: Trials
Chapter Thirty-Three: “Why Is It So Quiet Around Here?”
Chapter Thirty-Four: “He’s a Bad Man”
Chapter Thirty-Five: The Gupta File
Chapter Thirty-Six: Kumar Sings
Chapter Thirty-Seven: An Unhappy Diwali
Chapter Thirty-Eight: Et Tu, Kumar?
Chapter Thirty-Nine: A Family Secret
Afterword
Photos
Acknowledgments
A Note on Methodology
Notes
About the Author
Newsletters
Copyright
Copyright © 2013 by Anita Raghavan
Cover design © 2013 Hachette Book Group, Inc.
Cover design by Flag
Cover photo of the Red Fort in Delhi, India, by E+/Holger Mette
Cover photo of New York Stock Exchange © Walter Zerla/age fotostock
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ISBN 978-1-4555-0403-9
The Billionaire's Apprentice: The Rise of the Indian-American Elite and the Fall of the Galleon Hedge Fund Page 55