Key Insider Trading Witness Anil Kumar Lauded

Yoshita Singh/New York
Key Insider Trading Witness Anil Kumar Lauded
McKinsey's former India-born partner Anil Kumar whose "extraordinary" cooperation helped convict Wall Street tycoons Raj Rajaratnam and Rajat Gupta in insider trading trials deserves leniency at his sentencing later this week, US prosecutors here have said.

Ahead of his expected sentencing on July 19 for securities fraud charges, Manhattan US Attorney Preet Bharara, in a 20-page letter to US Circuit Court Judge Denny Chin, said Kumar's "cooperation was nothing short of extraordinary."

His "absolutely essential" testimony "substantially helped the government secure convictions in two of the most significant and high-profile trials of defendants for securities fraud in history, Raj Rajaratnam and Rajat Gupta."

Kumar, 53, had pleaded guilty in 2010 to charges of securities fraud and insider trading. He was arrested along with Rajaratnam in October 2009.

He was a key government witness against his Wharton Business School batchmate Rajaratnam, 55, and his mentor at McKinsey Gupta, 63, during their insider trading trials.

He faces a maximum prison sentence of 20 years but could be given a lenient jail term due to his extensive cooperation with the government.

Assistant United States Attorneys Reed Brodsky and Richard Tarlowe recommended in the letter that the court sentences Kumar keeping in mind the cooperation he provided.

The prosecutors said during Rajaratnam's trial, Kumar provided "devastating" testimony regarding his illegal tips to the Galleon hedge fund founder and the payments he received in return.

During Gupta's trial, Kumar provided testimony regarding the former McKinsey head's close relationship with Rajaratnam, Gupta's and Rajaratnam's involvement in launching a billion dollar private equity firm and Gupta's statements to Kumar regarding his relationship with Rajaratnam following the bankruptcy of Lehman in September 2008.

Rajaratnam is currently serving an 11-year prison term after he was convicted of insider trading charges last year.
Next Story : US Ship Firing: India Seeks Report From UAE Envoy
Download the Outlook ​Magazines App. Six magazines, wherever you go! Play Store and App Store
Online Casino Betway Banner