In addition to Galleon Group, one firm whose name has popped up a whole bunch as it relates to the Feds’ Insider Trading Fest(ivus) is McKinsey. Until they resigned, the consulting firm employed two partners, Rajat Gupta and Anil Kumar, who have both been accused to sharing material non-public information about various companies with their buddy Raj Rajaratnam (Kumar pleaded guilty last year and has been cooperating with the government, while Gupta, who was called out by the SEC in February, has vowed to fight thing thing to the death). Know who doesn’t have any senior executives on staff who may or may not have traded hot tips for money? Bain Chairwoman Orit Gadiesh can think of one. Continue reading »
Anil Kumar
Bain & Company Chairwoman Takes A Moment To Point Out Which Consulting Firm Hasn’t Been Employing Alleged Insider Traders
By Bess LevinRaj Rajaratnam Defense Argues Anil Kumar Was Paid $1 Million Per Year For “Legitimate” Work
By Bess LevinKumar was just doing “consulting” work for Raj, okay? Continue reading »
Did Raj Rajaratnam Not So Subtly Suggest Anil Kumar Should Trade Sexual Favors For Inside Information?
By Bess Levin
One thing we’ve learned about Raj Rajaratnam gal-pal Danielle Chieis over the last year or so is that the information she passed to the Galleon founder was the best of the best. To be sure, guys like Anil Kumar and Rajat Gupta gave Raj good stuff too, but Chiesi had a leg up on the other tipsters because she “used her sexuality to build sources at male-dominated tech companies.” Executives were apparently powerless to the allure of her “tight red suit with red fishnet stockings” and once they saw her “suggestive” dance moves it was game over.
It’s well-known at this point that she had an affair with IBM’s Bob Moffat who was more than happy to tip her off (not knowing he was just being used though, Moffat, who cried at least two times in public over Chieis, has since vowed to never open his heart to another woman again, besides his wife), from which Raj benefitted. Yesterday in court, former McKinsey director Anil Kumar confirmed another one of Danielle’s source of tips, and hinted that Raj wanted him to take a play from DC’s playabook. Continue reading »
While richly compensating employees, consultants and/or people providing you with material non-public information for jobs well done is probably the biggest factor in encouraging performance, a good manager knows there are other important ways to motivate people. As a Wharton grad, Raj Rajaratnam knew full well the benefit of patting lessors on the head to make them feel like a valuable member of the team so they continue to strive for your approval and affection. Take Anil Kumar. In 2006 he informed Raj of AMD’s plans to acquire ATI Technologies, in a project that was code-named ‘Supernova’ and ‘Go Big.’ Continue reading »
Raj Rajaratnam: “Should I Buy A Million?” Anil Kumar: “You Cannot Go Wrong- There Will Be Such A Boost From This Announcement”
By Bess LevinThat was one of the conversations played by the prosecution in court today, Day 3 of the Rajaratnam trial. Here was another:
“We know because one of our guys is on the board,” Rajaratnam told his friend, Rajiv Goel, during an Oct. 7, 2008, call. The two men are discussing the acquisition of PeopleSupport Inc. and Rajaratnam is telling Goel that he bought 30,000 shares for Goel’s account, according to the tape.
Incriminating or completely harmless? The government is hoping the jury’s reaction will lean toward the former, but according to the Rajaratnam defense team, the exchange was completely “harmless.” Nothing to see here. Continue reading »
Anil Kumar, the former McKinsey & Co. consultant who pleaded guilty to passing confidential information to Raj Rajaratnam, has been ordered to pay about $2.8 million in disgorgement and penalties to settle related SEC charges against him.
Kumar pleaded guilty in January to providing Rajaratnam with information about pending mergers including a takeover of ATI Technologies by Advanced Mirco Devices in 2006. After receiving the info, Raj told Kumar: “Anil, you are a hero,” according to prosecutors.
If you’re looking for a way to commemorate Kumar, please take a moment now to rock out to his rap. Full volume, no headphones.
The former McKinsey director pleaded guilty to one count of securities fraud and one count of conspiracy to commit securities fraud in Federal District Court in Manhattan.
Mr. Kumar told the court that he had leaked to Mr. Rajaratnam that Advanced Micro Devices was planning to acquire ATI Techonologies. The leak occurred in March 2006 before news reports about the deal had surfaced. He said that Mr. Rajaratnam told him, “Anil, you are a hero.”
Kumar, visibly crying, also apologized to his colleagues “for the shame they have suffered,” but did not specify if he was talking about shame as it related to insider trading, or for the rap AK wrote and recorded while at the firm.
