(MENAFN) The Galleon Hedge Fund received confidential information about Warren Buffett's investment in Goldman Sachs from former bank director Rajat Gupta, reported the Financial Times.
Galleon made over USD1.2 million in profits from buying Goldman Sachs stocks after receiving the tip from Gupta.
The Federal Bureau of Investigation (FBI) said that Galleon bought Goldman Sachs stocks within minutes of ending a phone call with Gupta. Gupta called Raj Rajaratnam, a former hedge fund manager at Galleon less than sixty seconds after ending a conference call with the board that allowed a USD5 billion investment to be made by Buffett's Berkshire Hathaway.
The FBI stated that Galleon traded 18.5 percent of Goldman Sachs stocks in the final 13 minutes of trading.
Gupta's defense lawyers argued that Gupta and Rajaratnam were not friendly with one another as Gupta wanted to sue Rajaratnam over the Voyager fund accounting scrupulation. Therefore, it would not be in his best interest to give Gupta any confidential information.
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