Anil Kumar, Former McKinsey Partner, Pleads Guilty to Conspiracy, Securities Fraud Charges
The scandal and investigations involving Raj Rajaratnam, the founder of hedge fund firm Galleon Group, continues to grow and leave more guilty parties in its wake.
Today it was announced that Anil Kumar, a former partner at consulting firm McKinsey & Co., is pleading guilty to criminal chargers of conspiracy and securities fraud in connection with insider tips that he provided to Rajaratnam about McKinsey clients.
Here is more information on this story:
Anil Kumar pleads guilty in Galleon inside trading case — (DealBook Blog at NY Times)
Mr. Kumar, 51, pleaded guilty to one count of securities fraud and one count of conspiracy to commit securities fraud in Federal District Court in Manhattan. Choking up and tearing, he said he “apologizes to his colleagues for the shame they have suffered.” Mr. Kumar said that from 2004 through 2009 he was paid by Mr. Rajaratnam to provide him with inside information about the companies he was working for.
Ex-McKinsey Exec Anil Kumar Says Rajaratnam Paid $1.7 Million — (Reuters)
A former McKinsey & Co director told a court on Thursday that Galleon hedge fund founder Raj Rajaratnam paid him $1.75 million in exchange for confidential information on clients to make illegal stock trades.
Ex-McKinsey Director Anil Kumar Pleads Guilty in Insider Case — (Forbes)
A former director of a global management consulting firm pleaded guilty Thursday to securities fraud charges, admitting making $2.6 million by feeding inside stock information to one of America’s richest men in history’s largest hedge-fund insider trading case.
With New Allegations, Hot Rajaratnam Case Gets Hotter — (Law Blog at Wall Street Journal)
Tuesday’s court filing, related to a motion by Mr. Rajaratnam’s lawyers to reduce his $100 million bail, says Mr. Rajaratnam bought shares of ATI securities for the Galleon Technology Funds in advance of the acquisition, which was announced in July 2006. The payment was to a source to whom Mr. Rajaratnam had begun making “large payments in exchange for inside information in or about 2004,” the U.S. said.
Tags: anil kumar, conspiracy, galleon group, insider trading, mckinsey, raj rajaratnam, securities fraud
So Anil Kumar followed the path of Jeffrey Shilling, and along with other “McKinsey greats” of Indian origin who are still being investigated and awaiting their exposure, has succeeded to cast a permanent dark shadow on a once-trusted institution. I was never comfortable with this arrogant man, nor did I expect him to be a potential criminal. He was obviously hiding his real character behind that mask and fooled too many smart MMcKinsey people. I am glad to see that his prosecutor is a man of Indian origin as well. That helps clear the Indian diaspora in the USA from being painted with the same brush!