"The Indictment did not allege a conspiracy only between Rajaratnam and Gupta; it alleged that the conspiracy also encompassed 'other co-conspirators at Galleon'. Second, so long as a co-conspirator statement was in furtherance of the conspiracy, there is no requirement that it have been in furtherance of the interests of the defendant himself or of any particular co-conspirator," the judges said.

Gupta had also challenged the district court's decision to exclude "classic state of mind testimony" from his eldest daughter Geetanjali that would have shown that Gupta was "furious" at Rajaratnam for cheating him out of millions of dollars through a joint investment fund Voyager.

In a conversation with his daughter on September 20, 2008 - just three days before he supposedly tipped Rajaratnam with information about Goldman and a month before the second tip - Gupta said he was angry at Rajaratnam for cheating him out of US $10 million.

Gupta's daughter had testified about certain conversations Gupta had with her about Rajaratnam.

However, the appeals court said that the trial judge was not wrong in curtailing the testimony of Gupta's daughter at trial.

Gupta is the most prominent corporate executive convicted in the government's sweeping investigation into insider trading.

The case, which caps a wave of successful insider trading prosecutions over the past years, is a significant victory for the government, which has penetrated some of Wall Street's most vaunted hedge funds and reached into America's most prestigious corporate boardroom.
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