I have thought a lot about this case and there is no way that it is anything but an extremely misguided verdict.

Leave alone the facts in the case.

Just look at the way it was decided.

1. There has NEVER been such a high-profile, distinguished corporate figure caught up in an insider trading investigation and convicted. Never. Yet, is Gupta some kind of Madoff-type figure to warrant this special treatment? No. By all accounts (including Goldman Sachs’) he was a very trustworthy, reliable director.

So why the special attention?  Even if Gupta was insider-trading – which I don’t believe for a second – are you telling me with a straight face that no other corporate directors get insider information and use it?

Buffet getting inside information about Goldman being rescued so he can pump money into it – what do you call that? Clairvoyance?

2. There has never been an insider investigation using RICO laws (Racketeering Influenced and Corrupt Organizations) and wire-tapping, outside mafia investigations. Now, it’s being used on senior managers? Why not on Congress? Or the Federal Reserve? Was Lloyd Blankfein wire-tapped? If not, why not? Do only brown people get wire taps? So instead of actual Russian Israeli mafia figures being investigated, Preet Bharara shines up his resume on the nearest desi patsy he can find?

3.  There was – for the tenth time – NO QUID PRO QUO. Gupta never traded on any information; he did not ask anyone else to trade; he showed no profits for his information; and, in fact, he lost his entire investment. This is the strangest insider-trading case, where the guy lost!  Why this specially severe treatment for an exceptionally brilliant and successful man, well-liked by everyone? Not a corporate raider who put people out of work, not a penny-stock shyster who scammed his customers, not a con man, or a thief, or incompetent. Why the severe charges and penalties?

4.  There was no MENS REA. Gupta’s chat is casual, because he doesn’t see it as “leaking’ or “tipping.” That’s quite obvious.  Galleon was an important client, Raj was a business associate.

5.There is no hard evidence and the circumstantial evidence is open to interpretation. Bharara’s charts show Galleon trading after quarterly reports as though this is inherently suspicious. All traders trade quarter results. There is nothing unusual in that.  The prosecution shows profits resulting after information passed (allegedly). It doesn’t show the days when trades were made and money lost after calls. It’s purely selective, hypothetical, inferential, and voodoo justice.

6. The only person who ever said  Gupta was envious was Rajaratnam. The only person whoever said there was a board member leaking was Rajaratnam. The only person who said Gupta wanted to be a billionaire was Rajaratnam. Rajaratnam is a convicted swindler and criminal hedge-fund operator. He’s suspected of funding the Tamil Tigers, who since 2006, have suddenly risen in status in US foreign policy.

That’s why the leftist media in the US was so sympathetic to Raj and took so long (12 days) over his case, which was FILLED with smoking guns and was evidently and obviously a large, deliberate conspiracy, while taking no more than a few hours to convict Gupta, who has been proved only to have chatted too openly with Raj.

Lloyd Blankfein is snickering and heaving a sigh of relief, hoping that the body he threw under the bus will keep the cops busy while he tidies up shop.

Please read the case. Look at the facts.

Please go over to Deep Capture or Naked Capitalism and read what what is really happening on Wall Street and who the bad guys are.