News broke late on Friday that a Morgan Stanley banker had allegedly leaked tips on a 2006 merger deal, which was then passed on to Galleon’s Raj Rajaratnam.We didn’t know the identity of the man at the time because the letter that revealed a Morgan Stanley connection, had redacted the banker’s name.
But now we know that the man is 42-year-old Kamal Ahmed, and according to the WSJ, he’s been put on leave by the bank.
Ahmed is alleged to have provided someone – whose identity is unknown – with information about AMD’s merger with ATI, who then provided that information to Raj Rajaratnam in ’06. Apparently Ahmed didn’t even know Raj.
Ahmed’s lawyer told the WSJ,
Mr. Ahmed is cooperating with Morgan Stanley in its investigation and we are confident when all the facts are known it will be shown that he did nothing illegal or unethical.
Morgan Stanley said,
If proven to be true, the alleged conduct would be a violation of Morgan Stanley’s values and policies. We have placed the banker on leave and are fully cooperating with the government’s investigation.
Ahmed is part of Morgan Stanley’s tech practice, where he’s: advised “leading technology companies worldwide, he has led a wide variety of financing transactions and has executed numerous mergers & acquisitions.”
One of those deals included HP’s $3.2 billion acquisition of 3Com, earning Morgan Stanley $32.5 million in fees.
His part in those types of massive transactions has garned Ahmed a following in the Muslim world; in a January of 2010 a young financier named Ahmed as one of the “Muslim stars on the U.S business scene,” in an interview with The National.
Ahmed earned a B.A. in Economics from Yale and an M.B.A. from Cornell.
He’s yet to be accused of any wrongdoing and it’s unclear, according to the WSJ, if he’ll be charged.