United States v. Gupta, No. 12-4448 (2d Cir. 2014)Annotate this Case
Defendant, a member of the board of directors of Goldman Sachs, appealed his conviction for three counts of securities fraud, in violation of 15 U.S.C. 78j(b) and 78ff, and one count of conspiracy to commit securities fraud in violation of 18 U.S.C. 371. The prosecution arose out of a multiyear government investigation of insider trading at Galleon which included court-authorized wiretaps of Galleon's founder's cell phone. The court concluded that the trial court did not err by admitting statements of a coconspirator, recorded in wiretapped telephone conversations to which defendant was not a party where the statements were admissible both as nonhearsay statements in furtherance of the conspiracy and under the exception for statements against penal interest. The court also concluded that the trial court did not abuse its discretion by excluding relevant evidence offered by defendant. Accordingly, the court found defendant's arguments on appeal were without merit and affirmed the judgment of the district court.