Raj Rajaratnam will be doing his 11 year sentence at Devens Federal Medical Facility in Ayer, Massachusetts - about 39 miles west of Boston, Bloomberg reported.

The Galleon Group founder will be processed there December 5.

But here's the real kicker. You'll remember that Judge Richard Holwell, who oversaw Raj's case, recommended that Raj do his time in the federal medical facility in Butner, NC -- where Bernie Madoff is currently serving his 150 years -- because he sympathized with Raj's condition.

Well, he did. But he also made the recommendation because Raj asked him to.

Maybe Raj had heard about Bernie "loving" jail in Butner. 

Last month, Larry Levine, president of Wall Street Prison Consultants, told Business Insider that although a judge will typically recommend a prison following a sentencing, the placement is usually random and depends on available bed space.

In Raj's case, Judge Holwell noted his poor health and possible need for a kidney transplant when he announced the 11-year sentence - very light compared to the 24 years prosecutors asked for - and recommended a medical facility.

There are only five federal medical centers in the U.S., according to the Federal Bureau of Prisons.

According to Bloomberg, Devens is known for long-term inmates with medical needs - the facility houses a range of inmates such as white collar criminals to sex offenders.

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Judge Jed Rakoff is known for being a tough-minded individual, and in the past few years he's seen a lot of cases that have to do with the financial industry, the most famous one probably being Raj Rajaratnam insider trading case. 

This morning, The Wall Street Journal published a profile on Rakoff called "No More Mr. Nice Guy- Just Ask Wall Street."We read it and picked out the two things you need to know.

First, Rakoff loves sordid details. When he was in the 6th grade, his "how I spent my summer vacation" essay about the family trip to Colonial Williamsburg somehow turned into a 50 page report on the dalliances of the founding fathers — Ben Franklin cheating on his wife, for example.

The report was supposed to be five pages long.

The second fact is that he enjoys ballroom dancing — light on his feet, heavy in the courtroom.

Oh, and by the way. Rakoff is expected to hand down a decision about Citigroup's 285 million SEC settlement today. Should be interesting stuff.

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Disgraced Galleon chief Raj Rajaratnam vacated his luxury Sutton Place apartment in Manhattan yesterday and checked into federal prison that houses high-level sex offenders.

Rajaratnam's new abode at the Devens Federal Medical Center houses nearly 1,000 inmates.  A significant portion of those inmates are sex offenders who require intensive, therapeutic treatment, while others suffer from severe substance abuse, according to Bureau of Prison's website (Download PDF).

The hedge fund manager, who was convicted of orchestrating the largest insider trading scheme in history, will at least begin his 11 year prison sentence at Devens. 

That's because Rajaratnam, a diabetic who requires dialysis, will need a facility to suit his health needs.  Devens has its own dialysis treatment center on site.

According to Ed Bales, a managing director for Federal Prison Consultants, Rajaratnam probably won't have to do any manual labor right away because of his health and he may never have to work during his sentence.  

"He's going to be reviewed because of his medical conditions," Bale told Business Insider. "They won't put him to work right away.  He's going to be sitting around loafing."

For entertainment at Devens, there are recreational rooms, but no individual televisions in the cells, Bale said.  There are gym facilities the inmates can use, but they are limited with equipment choices because they aren't suppose to bulk up, he added. 

"It's a very mundane lifestyle -- not too much excitement." 

SEE ALSO: The Rise And Fall Of Raj Rajaratnam >>

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The out of office message is fraught with professional and personal compromise, pitting connected competence against unplugged relaxation.

When you are in prison, things are more straightforward.

From Dealbook, we have a new contestant in the competition for the best out of office ever:

Michael A. Kimelman, a hedge fund trader on the outer edge of Raj Rajaratnam’s massive insider trading conspiracy, reported to the Federal Bureau of Prisons on Monday, surrendering at the United States Penitentiary in Lewisburg, Pennsylvania.

The new wry, automated response on his e-mail: “This email address is currently at a re-education camp for the indeterminate future and will not be checked. Please try back once its lesson has been learned. Mike”

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Let's face it. 

It hasn't been the best year for Wall Street.  In fact, it's been pretty bad. 

We've had a massive rogue trading loss, a major bankruptcy, some insider trading scandals, tons of layoffs hitting financial firms, major hedge fund losses and several lawsuits, just to name a few. 

As a result, we've decided to put together a list of some of the naughty and nice behavior of a few Wall Streeters.  

Some of them are givens for the naughty list, while for others we might have to leave that decision up to Santa.

Carsten Kegenter, head of UBS investment bank

Why he's on the naughty list:

• During his tenure as head of UBS's investment banking division, the firm lost a massive $2.3 billion in September believed to be caused by a lone rogue trader.  His management protocols came under scrutiny as a result of the loss.

• In November, Kegenter was dinning with a bunch of senior bankers when he reportedly made a anti-Semitic comment about how UBS needs to cut costs like a "Jewish shopkeeper."
   

Raj Rajaratnam, Galleon ex-CEO

Why he's on the naughty list:

• The disgraced Galleon chief was convicted of orchestrating the largest insider trading scheme in history and was subsequently sentenced to 11 years in federal prison and fined $10 million.

Joseph "Chip" Skowron III, former FrontPoint portfolio manager

Why he's on the naughty list:

• In August, Skowron plead guilty to a single count of conspiracy to commit securities fraud and to obstruct a SEC investigation.
• Initially, he denied charges against him that a French doctor illegally tipped him off about a clinical drug trial.

Why he's on the nice list: 

• Skowron, who holds a medical degree, has done extensive volunteer work in the past, but that's been on hold since the scandal. 

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When the Federal investigators want to infiltrate the super-secretive world of hedge funds to expose insider trading, they try similar methods used to take down the Mafia, Bloomberg News' Patricia Hurtado reported.

Sounds exciting, right?

This sort of investigation conducted by the New York FBI office has been coined "Perfect Hedge," the report said.

Not only does this investigative process include using court-authorized wiretaps of phones, informants and cooperating witnesses, but also conducting surveillance of targets on street corners and gyms they frequent. (Yes, even the gym!)

What's more is agents are strongly encouraged to learn every possible detail about fund managers suspected of insider trading and those they would like to bring in as cooperating witnesses. 

This goes as far as knowing the brand of coffee they prefer (Dunkin or Starbucks) and their favorite lunch spot, the report said. 

Of course, the really big weapon Federal investigators use to uncover insider trading circles is the use of phone wiretaps. 

This was recently evidenced in the Raj Rajaratnam Galleon insider trading scandal where agents captured more than 2,400 conversations between Rajaratnam and his associates, friends and alleged accomplices.  Forty-five of those conversations were played during the trial, the report said.

The thing is the FBI can't simply use a wiretap without first having probable cause. 

So what they do is find a cooperative witness to agree to wear a wire to record an incriminating conversation so they can proceed with using court-authorized wiretaps. 

Again, they are able to find someone to cooperate by knowing every detail about that person including their crimes and personalities in order to persuade them to cooperate with the investigation, the report said.

Since the onset of the financial crisis, there has been a major crack-down on insider trading.  At least 56 people have been charged with insider trading.  More than 50 of those have either pleaded guilty or have been convicted, the report said.  Wiretaps were used in many of those instances. 

Read The Full Bloomberg Report Here >>

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The Wall Street Journal just published a nice profile of Mark Mahaney, Citi's Internet analyst, who has long been one of the best Internet analysts on the Street.

The focus of the profile is how Citi is now cashing in on Mahaney via tech IPOs: The companies all want Mahaney to cover their stocks, so they pick Citi as an underwriter.

This, of course, was one of the big reasons that companies chose particular underwriters back in the wild-and-crazy 1990s: They wanted the industry "axe," as the most influential analysts are known, to get investors all hot and bothered about their stocks.

And given that the IPO process is pretty much a commodity transaction, the clout of the research analyst is one of the easiest ways for firms to differentiate themselves.

(Of course, this link between research and banking was supposed to have changed after the Eliot Spitzer research-banking scandal starring yours truly and other analysts, but plus ça change...  And this also, by the way, shines further light on why some analysts like Mahaney become influential: They're good analysts, so investors listen to them. And you don't get respected for being a good analyst by shilling for crappy banking clients.)

Anyway, here's one noteworthy detail in the Mahaney profile, one that can be tucked away in the "integrity wins in the end" file:

Mr. Mahaney, age 46, spent the original dot-com bubble of the late '90s at Morgan Stanley as a junior analyst working with Mary Meeker, then a star Internet analyst. He then did a stint at hedge fund Galleon Group, whose founder was imprisoned after an insider-trading conviction. One person familiar with the matter says Mr. Mahaney was fired from Galleon for "not getting enough edge" on stocks.

Catch that?

Mahaney was fired from Galleon for "not getting enough edge."

Know what "edge" is a synonym for in this case?

"Information."

So it seems reasonable to translate that sentence as: "Mahaney was fired for refusing to obtain and use the same sort of superior information as his boss Raj Rajaratnam."*

It sucks to be fired, for any reason. But if there's ever a situation that reveals that some things are worth getting fired for, this is it.

Mahaney is now enjoying his reign as one of Wall Street's top Internet analysts.

Raj Rajaratnam, meanwhile, will be spending the next decade in prison.

* UPDATE: A source who worked at Galleon suggests this interpretation of "edge" is unfair: "There was no pressure to find and utilize inside information, ever--there was, however, pressure to be on top of your companies, to know earnings estimates cold, to understand what made the stocks go up or down, and to have a sense of what people expected into prints and how to react out of them."

SEE ALSO: The Rise And Fall Of Raj Rajaratnam

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We all know how things turned out for former Galleon head, Raj Rajaratnam.

Now Raj's friend, Rajat Gupta, a former Goldman Sachs director, is getting ready for his turn in the hot seat (with Judge Rakoff, no less).

Gupta, though, wasn't nearly the insider trader that Rajaratnam was. In fact, he never profited from inside information at all, he just handed information off to Raj.

So his lawyers are taking advantage of that fact to make three arguments for why Gupta shouldn't be treated the same way Raj was. We picked up copies of their memorandums from Dealbook.

First, thing's first, they're asking that wiretaps not be used in the case. It's going to be a hard sell, given the fact that Raj got the full wire-tap treatment, and that most of the case against Gupta is built around tips he gave Raj over the phone. For example, he told Raj that Warren Buffett was going to buy Goldman stock — and then Raj turned right around and bought some himself.

But Gupta's lawyers are arguing that Raj's wiretaps shouldn't have been used in the first place (so wiretaps shouldn't be used against Gupta) for three reasons.

1. Because "Title III does not permit prosecutors and investigators to use wiretaps in investigations of suspected insider trading..."
2. Gupta's lawyers allege that the government did not prove that all other methods for gathering evidence had been exhausted before they used wiretapping in Raj's case.
3. If the government had actually tried to argue that all methods of evidence collection had been exhausted and moved to use wiretaps, a judge would have rejected that motion.

The next argument Gupta's lawyers have pulled out is that there are too many counts against their client. The prosecution is using two incidents where Gupta passed information along to Raj to make their case against him, but there are 5 securities charges against him. Gupta's lawyers want some of those removed or consolidated.

Plus, Gupta's lawyers found some of the language in the charge against their client misleading. The charges state that Gupta passed along information about Goldman Sachs, Proctor and Gamble and "other companies"... but none of the evidence mentions what those "other companies" could be.

Lastly, Gupta's lawyers are asking for a “bill of particulars” — a detailed former statement outlining the charges against the defendant — to help them clarify all the charges in documents the government provided as evidence in the case. There are about 2.2 million of those documents.

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U.S. prosecutors announced a superseding indictment Tuesday in the insider trading case of Rajat Gupta. [via @CNBC]

That basically means it's a rewritten indictment.

Gupta, the former McKinsey & Co. executive and Goldman Sachs board member, has been charged for illegally tipping Raj Rajaratnam while he was serving on the boards of Goldman Sachs and Procter & Gamble. 

Disgraced Galleon chief Rajaratnam is currently serving 11 years in federal prison for orchestrating one of the largest insider trading circles in history.

After comparing the new indictment in the Gupta case with the old one we have noticed a few changes.

• The alleged insider trading scheme dates back about a year earlier than previously thought.  Prosecutors allege that Gupta and Rajaratnam 's scheme began around 2007 instead of 2008, according to the new indictment.
• The superseding indictment also highlights two additional allegedly illicit trades in Goldman Sachs stock.  Those trades allegedly took place in March and September 2007 before earnings were publicly announced. 
• Furthermore, the superseding indictment claims that Gupta benefitted from his relationship with Rajaratnam.  For instance, Gupta allegedly had significant equity in Voyager Capital Partners, which Rajaratnam managed a significant portion and invested certain assets in Galleon.  Gupta was also appointed chairman of Galleon International and granted an ownership stake by Rajaratnam. 

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This doesn't mean insider traders should be any less scared, but it's interesting nonetheless.

Richard Holwell sentenced Raj Rajaratnam to 11 years in prison last year. Last night, according to Bloomberg, he quit his job. The weird thing about it is how everyone found  — in a press release advertising his new firm Holwell Shuster & Goldberg.

Holwell is a graduate of Columbia Law School, and he's starting his new firm with some of his former partners from his days at White and Case. They'll be practicing complex commercial litigation and a specialty in antitrust, bankruptcy and securities law — so maybe he'll find himself on defendants side of his next insider trading case.

From the NYT:

“It’s an extremely rewarding job but can also be an extremely isolating job, and that can be challenging,” the mustachioed Judge Holwell said. “Your role is to stand away from the fray. No one sends you e-mail or calls you on the phone. It’s a fact of life, and every judge feels that isolation.”

In recent years, several federal judges have stepped down from the bench, bemoaning their low salary, currently $174,000 a year. John G. Roberts Jr., the chief justice of the United States Supreme Court, has in the past advocated for higher pay for the judiciary.

Judge Holwell said that his decision had nothing to do with his compensation.

“It wasn’t an issue of the woefully inadequate pay,” he said. “I worked for 30 years in the private sector. It’s simply the opportunity to do something completely different, so I’m going to take that opportunity.”

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Last week, prosecutors said there may have been someone else informing Raj Rajaratnam in from inside Goldman Sachs.

Now there's a report of who investigators are looking at.

According to the Wall Street Journal, a high profile Hong Kong based tech analyst Henry King is being investigated by authorities for passing information to Galleon Group, the hedge fund of now jailed money manager Raj Rajaratnam.

The Journal says the story came from sources close to the situation, and of course nobody, not the authorities and not Goldman, would comment on it. The firm told its Asia clients that King was on a leave of absence after taking a trip to the United States earlier this year.

And here's why authorities think they've found their man (from the WSJ):

Mr. King's research activities spotlight the flow, from Taiwan to U.S. investors, of information about the supply chain for personal-computer parts makers from Taiwan.

In recent years, technology investors have increasingly used snippets of information about the production of computer parts as an indication of how demand in the U.S. for computers might be shifting, in turn affecting the results of U.S. technology companies.

Galleon was one of King's clients before Rajaratnam was charged, and the hedge fund had such a close relationship with Goldman that top execs were known to visit it. However, there is no proven connection between those visits and King.

Read the full article at the WSJ>>

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In January the NYT reported that former Goldman Sachs director Rajat Gupta's lawyers were going to try to save him by arguing that wire-tapped conversations should not be used as evidence in his trial.

See, those wire-taps were part of what sealed the deal for Rajat's alleged accomplice, convicted insider trader and former Galleon Group head, hedge funder Raj Rajaratnam.

Since those conversations damned Raj, some think that it follows that they would damn Rajat too.

And now it looks like they will be used as evidence. Reuters reports that Judge Rakoff ruled that using the wire taps was valid because "insider trading cannot often be detected, let along successfully prosecuted, without the aid of wiretaps."

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There's a new player in the insider trading case against former Goldman director Rajat Gupta, and he could be an asset to Gupta's defense. 

His name is Ravi Trehan, a friend of Gupta's and once a partner that collaborated with Rajaratnam and Gupta on an investment firm, according to the Wall Street Journal. Trehan's role in the Gupta trial was made public just today. Gupta, a former head of McKindsey & Co., is accused of passing on insider information to convicted insider trader and former Galleon Group founder Raj Rajaratnam.

The value of Trehan's possible testimony would lay in his description of a phone call Gupta made to Trehan right after the Goldman board of directors approved a $5 billion investment from Warren Buffett at the height of the financial crisis, the WSJ reported. Gupta is accused of passing on the information to Rajaratnam following the meeting, after which Rajaratnam loaded up on shares of Goldman Sachs.

But his phone call to Trehan after calling Rajaratnam suggests something else that the defense is likely to take full advantage of—

Mr. Trehan says Mr. Gupta didn't mention the Buffett deal in the call on Sept. 23, and that neither Mr. Trehan nor Broadstreet bought or held any Goldman stock during 2008, according to his lawyer, Ms. Sheth. She says he doesn't remember all the details of the call, but that it appears that the men were talking about a meeting scheduled for the next day on a prospective investment.

Mr. Gupta's defense team would likely use Mr. Trehan's testimony about the call to show jurors that he wasn't focused on telling associates about the Buffett deal, people familiar with the matter said.

Think they have a good defense case built up?

Read the whole WSJ article here >

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A Goldman Sachs investment banker is under investigation for tipping off former Raj Rajaratnam's former Galleon Group fund to pending healthcare deals.The New York Times' Peter Lattman reports.

Federal agents are probing Matthew E. Korenberg, a San Francisco based banker,  about two specific deals — the 2009 takeover of Advanced Medical Optics by Abbot Labs, and Med MedImmune’s acquisition of AstraZeneca in 2007.

According to the NY Times, Korenberg worked on the team that advised Advanced Medical Optics, and when the deal was announced, their share price jumped 150%.

Kronenberg is the third Goldman banker to become the subject of an investigation involving Raj Rajaratnam. The other two are David Loeb, a Goldman salesman, and Henry King, a technology stock analyst.

Both Goldman and the FBI declined requests for comment.

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NEW YORK (Reuters) - Barely a day went by at the insider-trading trial of multimillionaire hedge-fund founder Raj Rajaratnam a year ago without mention of Rajat Gupta, a boldface name in business and charity circles.

On Monday in the same federal court in New York, it will be Gupta's turn to go on trial. The former Goldman Sachs Group Inc <GS.N> and Procter & Gamble <PG.N> board member is accused of leaking stock secrets to Rajaratnam, his erstwhile friend and business associate who was convicted and is now in prison.

But while prosecutors have called Gupta the "illegal eyes and ears" for Rajaratnam, this is a very different case. At Rajaratnam's trial, jurors spent weeks listening to the Galleon Group founder discussing stock trades on calls secretly recorded by the FBI. With Gupta, prosecutors have no direct conversations on tape related to the trades central to their case.

One of the government's core allegations is that Gupta tipped Rajaratnam to Berkshire Hathaway Inc's <BRKa.N> <BRKb.N> $5 billion investment in Goldman during the 2008 financial crisis and Goldman's surprise fourth-quarter loss that year.

Gupta, 63, has pleaded not guilty. His lawyers have argued that others may have leaked information about Goldman to Galleon and that Gupta, who once led management consultant McKinsey & Co, had no reason to illegally spill corporate secrets.

"This is a classic reasonable doubt case," said Tom Dewey, a partner at law firm Dewey Pegno & Kramarsky in New York, who is not involved in the case. "The core defense message will be: 'There is just not enough evidence.'"

Gupta also is charged with providing non-public information to Rajaratnam in 2008 and 2009 about P&G.

A jury of 12 and four alternates will be chosen on Monday for the trial before U.S. District Judge Jed Rakoff, who expects it to last about three weeks. Opening arguments from Assistant U.S. Attorney Reed Brodsky and defense lawyer, Gary Naftalis, could start later Monday.

Gupta is charged with five counts of securities fraud and one count of conspiracy. If convicted, he faces up to 25 years in prison, though such a long sentence would be unlikely. Rajaratnam was handed an 11-year term in October, the longest for insider trading in the United States, after being overwhelmingly convicted on 14 criminal counts.

DECADES AT MCKINSEY

Gupta, the most prominent person indicted in the government's insider-trading crackdown, has had a remarkable fall from grace. Born in India, he earned an MBA from Harvard Business School and spent 34 years at McKinsey, serving as its global head for nine years. He retired in 2007.

He joined Goldman's board in 2006 and left in May 2010, seven months after Rajaratnam's arrest. Gupta, who was arrested last October, was also formerly a director at P&G and American Airlines Corp.

Naftalis has touted Gupta's charity, particularly his work to combat AIDS, malaria and tuberculosis, to rebut any possible government argument that he was motivated by money.

"He has had a wonderful, blameless life and out of the clear blue sky in the seventh decade of his life he decides to become a criminal?" Naftalis said at a pre-trial hearing.

Naftalis fought unsuccessfully to exclude three wiretaps between Rajaratnam and two traders that could implicate Gupta. But the judge said his ruling was not final.

Naftalis has not said if Gupta will testify in his own defense. Some high-profile witnesses could take the stand including Goldman Chief Executive Lloyd Blankfein, who also testified at the Rajaratnam trial as a government witness and said Gupta breached his fiduciary duty to the investment bank.

The case is USA v. Gupta, U.S. District Court for the Southern District of New York, No. 11-907.

(Reporting by Grant McCool; Editing by Martha Graybow and Maureen Bavdek)

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Goldman Sachs' chief executive Lloyd Blankfein, who is also a lawyer, seems to have a lot of experience in court.

He took the stand yesterday during the insider trading trial of Rajat Gupta, a former board member at the investment bank accused of allegedly passing secrets he learned to Raj Rajaratnam.  

However, we were surprised to learn that there were no photos of Blankfein arriving at the courthouse.

There were plenty of Paris Hilton getting out of a black SUV taken by photographers who were awaiting Blankfein's arrival, but none of Goldman's chief. 

The reason photographers failed to get a photo of Blankfein outside is because he was given permission to drive into the parking garage below the courthouse and enter through the basement,  according to the New York Times' Dealbook.

Well played. 

Here's the courtroom sketch of Blankfein on the stand.  Of course, cameras and phones are not permitted in the courtroom. 

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The lawyer slapped with the longest-ever prison sentence for insider trading spearheaded an epic scheme that began before he even finished law school.

Matthew Kluger was convicted last year of stealing corporate merger tips from four law firms over 17 years and passing them along to a trader, Bloomberg reported.

A federal judge sentenced him to 12 years in prison Monday, reportedly calling him out on his "thuggish" behavior.

His record sentence might be due to the length of the scheme — or the fact that he orchestrated the entire thing.

Business Insider scoured the documents in Kluger's case and found the nearly 20-year scheme began in 1994 before Kluger had even graduated law school. He was working as a summer associate at Cravath Swaine & Moore.

The scheme continued when he went on to work at Wilson Sonsini, court records show.

"Early in the scheme, Kluger disclosed information relating to deals on which he personally worked," FBI special agent Michael Doyle testified.

"As the scheme developed, and in an effort to avoid law enforcement detection, Kluger was careful to steal and disclose information about deals on which he did not personally work, but which he learned about by searching his law firm's computer system," Doyle added.

Kluger was the first to contact his alleged co-conspirators about stealing information from law firms, according to Doyle.

As a young lawyer, Kluger would cull information from his law firm's computer and pass it along to the middleman — identified only as CC-1 in the court documents but who we now know to be Kenneth Robinson.

And Robinson would then pass the information to Garrett Bauer, a trader, who would purchase large quantities of stock ahead of significant trades, according to court documents.

The trio's illicit trades including buying shares in Omniture Inc. right before Adobe Systems Inc. purchased the company.

Bauer also bought stock in Sun Microsystems, Inc., after Kluger accessed computers in 2009 at Wilson Sonsini and discovered Oracle Corporation was set to buy Sun Microsystems.

Throughout the course of the scheme, the trio invested more than $109 million and netted more than $32 million "in illicit profits," Doyle said.

DON'T MISS: The Ultimate Guide To Kicking Ass On Wall Street >

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Rajat Gupta, the former McKinsey & Co. executive and Goldman Sachs board member, will not testify in his own defense in the insider trading case against him, CNBC's Bertha Coombs reports. 

His lead defense attorney Gary Naftalis had indicated on Friday that it was "highly likely" Gupta would testify, but changed his mind on Sunday in a letter to Judge Jed Rakoff, according to the report.

That means closing remarks could come as early as Wednesday, the report said.

Gupta has been charged with passing secrets to Raj Rajaratnam while he was serving on the boards of Goldman Sachs and Procter & Gamble. 

Disgraced Galleon chief Rajaratnam is currently serving 11 years in federal prison for orchestrating one of the largest insider trading circles in history.

DON'T MISS: Here's How Lloyd Blankfein Completely Avoided Getting His Picture Taken While Walking Into Court >

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Evidence that came to light during the Rajat Gupta trial may spell trouble for other Goldman Sachs employees that did business with convicted insider trader, Raj Rajaratnam.

New wiretaps and e-mails indicate that Goldman sent the convicted former hedge funder frequent e-mails full of juicy information before Galleon's morning meetings, Reed Albergotti at The Wall Street Journal reports.

The question, now, is whether or not that information was truly "insider" information.

Since Rajaratnam's conviction last year, more and more people who had contact with him have come under suspicion (and worse) of insider trading. A former Goldman partner, Rajat Gupta, was convicted of insider trading last week.

Three other current employees are also under investigation, including Hong Kong-based analyst Henry King, investment banker Matthew Korenberg, and David Loeb, a senior salesman at the bank.

The e-mails in question were sent by Loeb, and came to light as evidence during Rajat Gupta's trial. That bundle of evidence also includes some wiretapped phone calls.

What's most of interest to prosecutors, aside from the fact that Loeb called Rajaratnam, "Dr. RR" and signed his e-mails "CBF" for "chunky but funky", is the fact that Loeb shared Apple and Intel production and product data. There is, however, no evidence that Rajaratnam traded on that information, says the WSJ.

From the Wall Street Journal:

In an August 5, 2008, email to Mr. King, then Goldman's research chief in Taiwan in 2008, Mr. Loeb asked his colleague for an "update" on Intel. Mr. King wrote back with a spreadsheet attached, with "u would not believe this" in the subject line. Defense attorneys for Mr. Gupta maintained at his trial that the Intel information was confidential.

Mr. Loeb emailed Mr. Rajaratnam the next morning, saying: "need to reach u with some PARTICULARLY important data" before the market opened for the day...

In one email on August 21, 2008, Mr. King sent Mr. Loeb information about Apple products. There is no indication that the information was confidential or whether Mr. King knew how Mr. Loeb intended to use it.

In one call, Loeb assured Rajaratnam that the information that he was giving him went to him and another former Galleon trader alone. " I tell a couple of guys on the Street but you guys get the first call and that's it," he said according to the WSJ.

It's important to remember that none of these Goldman employees (or the bank itself) have been charged with wrongdoing. In fact, they may never be charged at all.

So we'll see.

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A main government witness in a case against a hedge fund boss  testified Wednesday she lied to investigators to protect her friends from insider trading allegations.

The witness, former Intel executive Roomy Khan, testified that she tried to keep investigators focused on their main target, Raj Rajaratnam, Bloomberg Businessweek reported Thursday.

“This has been very difficult for me, and I understand that I lied a number of times,” she reportedly said during her tearful testimony at the insider trading trial of Whitman Capital LLC founder that Doug Whitman.

Khan, who previously pled guilty to insider trading and agreed to cooperate with prosecutors, is one of three witnesses testifying they gave Whitman illegal information about Google, Marvell Technology, and Polycom.

David Anderson, Whitman's lawyer, called the three witnesses "criminals and liars" who are just cooperating with the government to avoid prison.

DON'T MISS: Pfizer Admits To Bribing Public Officials And Agrees To Fork Over $60 Million >

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