Federal prosecutors in California are investigating whether a Goldman Sachs executive leaked confidential information about two publicly traded companies to Raj Rajaratnam, the convicted hedge fund manager. The previously undisclosed criminal inquiry emerged during a pretrial hearing on Thursday in the case of Rajat K. Gupta, the former Goldman director. Mr. Gupta is accused of telling Mr. Rajaratnam about secret boardroom discussions at Goldman and Procter & Gamble, where he also served on the board. More in the New York Times here.
