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23 Mar 2011

Roundup: Rajaratnam's Hedge Fund Trial Updates

HedgeCo News - As the Sri Lankan born-American hedge fund manager charged with 14 counts of conspiracy and securities fraud awaits trial, speculation is mounting about who will be testifying against him.

MarketWatch - U.S. federal prosecutors plan to call Lloyd Blankfein, the chief executive of Goldman Sachs Group Inc,, to testify in the insider-trading trial of Galleon Group hedge-fund manager Raj Rajaratnam.

Bloomberg - In calling Blankfein as a witness, prosecutors in the office of U.S. Attorney Preet Bharara in Manhattan said they don’t want Blankfein to be questioned about “whether Goldman Sachs is presently the subject of any pending investigations by either the Department of Justice or the U.S. Securities and Exchange Commission” or whether the bank bears any responsibility for the 2008 financial crisis.

BBC - So far more than two dozen people have been criminally or civilly charged in the case. 19 have pleaded guilty

Hindustani Times - Rajat Gupta, former chief executive of consulting major McKinsey and accused by the US Securities and Exchange Commission of conspiring with Galleon hedge fund executive Raj Rajaratnam in an insider trading scam, has resigned as the chairman of Indian School of Business (ISB), Hyderabad. “Gupta has requested the ISB executive board to relieve him of his board responsibilities till his pending matter with the US SEC is resolved,” an ISB spokesperson said.

Rajat Gupta is also suing the SEC, claiming an administrative action it filed for insider trading bars him from a jury trial.

Editing by Alex Akesson