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Did Raj Rajaratnam Not So Subtly Suggest Anil Kumar Should Trade Sexual Favors For Inside Information?

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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.

Anil Kumar, a former director at McKinsey & Co., said Raj Rajaratnam told him the value of his inside information to Galleon Group LLC was “diminished” because trader Danielle Chiesi's “intimate relationship” with the head of Advanced Micro Devices Inc. (AMD) made her tips more valuable. He told jurors that he tipped Rajaratnam about AMD’s 2008 plan to spin off a manufacturing entity for its microchips, and on investments from sovereign wealth companies including Abu Dhabi’s Mubadala Development Co. Kumar said Rajaratnam warned him his information was no longer as useful as it once was. “He said there was someone on Wall Street that had an intimate relationship with my client, AMD, who was able to provide more information than I was,” Kumar testified, later identifying the individual as Chiesi.

As we recently discussed, Raj was nothing if not a master of subtle manipulation. He knew the importance of making his little worker-bees strive to please him by patting them on the heads when they were of use, so that they might continue working to once again receive his approval and affection. Would Raj tell Anil all this just to tell him? No, he was putting it out there to 1) pit Kumar and Danielle against each other and 2) say, in not so many words, that if you want to once again be my little "star" you'll try Chieisi's MO. As Kumar has just been completely unloading everything he's got in the last week, it wouldn't be out of the realm of possibility for tomorrow's testimony to be about how he attempted to give someone at AMD a hand job and when the target yelled "WHAT ARE YOU DOING?" he was all, "Nothing! You had some crumbs." And then walked out of the building thinking about how he'd failed Big Raj.

Rajaratnam Favored Chieisi's Tips On AMD, Kumar Says [Bloomberg]

Earlier: How Former Beauty Queen Danielle Chiesi Got Her Hot Tips