The rumour going round is that Anil Kumar, a former McKinsey director and longtime buddy of Raj Rajaratnam from their days at Wharton, will be the first one on the witness stand in the insider trading trial.
So here’s a primer on who this guy is.
Kumar has already plead guilty to passing inside information to Raj. In fact, he says he earned $2 million providing tips on McKinsey clients such as AMD to his college pal.
Raj is alleged to have called him a “hero” for his efforts.
Kumar, who “choked back tears” when he admitted guilt, earned degrees from the Indian Institute of Technology Bombay in India, and Imperial College in the UK, before earning his MBA at Wharton, alongside Raj.
He set up and ran McKinsey’s office Silicon Valley in the 80s, then did the same thing in India in the 90s.
Yesterday during opening remarks, the government alleged that Raj had made quarterly payments to his longtime friend, Kumar, for his passing on inside information about clients he worked with at McKinsey.
Raj allegedly paid his old Wharton buddy hundreds of thousands of dollars for inside information about McKinsey clients including AMD. The pair allegedly came to an agreement in which Raj would make quarterly payments to Kumar for information, but because Kumar was concerned about the appearance of those payments, they organised to have funds sent to a Swiss bank account.
The government also accused Raj and Kumar of conspiring to create an offshore investment vehicle in the name of Kumar’s Indian housekeeper, to reinvest in Galleon with those payments.
Kumar is also said to be the protege of alleged inside trader and ex-Goldman Sachs exec Rajat Gupta, having become close in their time at McKinsey.
“The two operated as a forceful double-act to secure business for McKinsey, win access in Washington and build a brotherhood of donors around the Hyderabad-based ISB and a handful of social initiatives,” the FT reported.
The pair also co-founded the Indian School of Business.
He’s was also a member, and may still currently be, of the Council on Foreign Relations.