On March 17th, FINalternatives reported that federal district court judge Jed Rakoff called the SEC's administrative lawsuit against former McKinsey managing director Rajat Gupta "bizarre." Rakoff made those remarks at a hearing in the SEC's civil insider trading action against Adam Smith, a former trader for Galleon Group. Rakoff Remarks. Bloomberg reported that the wiretapped conversations between Gupta and Galleon Group founder Raj Rajaratnam, which have been played during Rajaratnam's criminal insider trading trial, do not provide clear evidence of Gupta's intent to conspire with Rajaratnam. Ambiguities.