The defense team also argued that investigators had obtained court authorization for the wiretaps in part by stating that federal informant Roomy Khan, a former Galleon employee, had "not yet been charged with any crimes."

But Khan was convicted on wire fraud charges in 2001. As part of a cooperation deal with federal investigators, she also pleaded guilty to destroying evidence in 2008. And she "fabricated evidence" in a California civil case, the defense team alleged.

SEC spokesman John Heine said, "We look forward to presenting our case in court."

Manhattan federal prosecutors declined to comment.