Proving that Mr. Gupta received some type of benefit will be crucial to the government’s case because without it there is no tipper liability for insider trading….This issue may signal a potential line of defense that Mr. Gupta can offer at trial, especially if the wiretap evidence is admitted. While it will be difficult to deny that he spoke with Mr. Rajratnam at crucial times, Mr. Gupta can defend himself against the charges by arguing that he was just telling a friend about corporate developments but never expected to benefit from it personally. In effect, he can try to throw Mr. Rajaratnam “under the bus” by arguing that he was as much of a victim of insider trading because his trust was betrayed by a longtime friend.
‘Enforcement 40’ for 2020
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