Former McKinsey Consultant Pleads Guilty to providing Raj Rajaratnam with Insider Info

January 10th, 2010
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In March 2006, former McKinsey & Company director Anil Kumar delivered confidential information about a future takeover of ATI Technologies by Advanced Micro Devices (NYSE: AMD) to his friend Raj Rajaratnam, Galleon Group founder. According to the New York Times, Mr. Rajaratnam paid at least $1.75 million in cash for the insider tip and allegedly used the information to makes profits of approximately $19 million for his hedge funds.

Anil Kumar pleaded guilty to revealing all this information in the Manhattan Federal District Court on January 7th and became the seventh of those charged in the insider trading case to confirm cooperation with the Galleon Group investigation. Kumar was convicted to 25 years in prison but a deal with the government is likely to shorten this sentence significantly. Raj Rajaratnam has denied paying anyone for inside information but Anil Kumar and prosecutors continue to argue that he did indeed pay Kumar $500k per year starting in 2003.
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For Detailed Investor Profiles on these Investors, click below:
Galleon Management
Related People: Gary Rosenbach; Raj Rajaratnam
Related Entities: Galleon Admiral's; Galleon Buccaneers; Galleon Captains; Galleon Communication; Galleon Diversified; Galleon Explorers; Galleon Group; Galleon Healthcare; Galleon Technology
Related Article Tags: Hedge Fund Fraud and Ponzi Scheme News

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