Tuesday, May 22, 2012

FOXNews.com: Witness at ex-Goldman board member's trial puts him on billionaire's 'important people' list

FOXNews.com
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Witness at ex-Goldman board member's trial puts him on billionaire's 'important people' list
May 22nd 2012, 18:09

NEW YORK –  The first witness at the New York insider trading trial of a former Goldman Sachs board member says her billionaire boss was "smiling more" after receiving a call that prosecutors said was an inside tip from the defendant.

Caryn Eisenberg is a former assistant to Galleon Group hedge fund founder Raj Rajaratnam (RAHJ rah-juh-RUHT'-nuhm). She testified Tuesday that Rajaratnam's smiles followed a phone call he received just before the markets closed on Sept. 23, 2008. Prosecutors say the defendant, Rajat Gupta, told Rajaratnam that then-struggling Goldman Sachs was about to receive a $5 billion investment from billionaire investor Warren Buffet.

Prosecutors say Rajaratnam bought $27 million in Goldman stock and made about $1 million when the news was announced the next day.

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