For Gupta Trial, Tension and Tips

By

Michael Rothfeld and

Susan Pulliam

Updated May 18, 2012 8:01 p.m. ET

A week before his arrest in October 2009, hedge-fund titan Raj Rajaratnam had a tense conversation over a soured investment with Rajat Gupta, his friend who was on the board of Goldman Sachs Group Inc.

Mr. Gupta was upset and blamed Mr. Rajaratnam, who had managed their joint investment fund, for taking millions of dollars out without disclosing it. Mr. Gupta believed the withdrawals contributed to the loss of their equity in the...