Wednesday, 29 June 2016
Last updated 56 min ago
Dec 31 2009 | 1:54am ET
Prosecutors may have won another guilty plea in the Galleon Group insider-trading scandal.
Anil Kumar, a former McKinsey & Co. director, has agreed to waive indictment. The U.S. Attorney’s office in Manhattan, in a court filing yesterday, indicated it would file a criminal information against Kumar. In all likelihood, that means he’s struck a deal with prosecutors.
Kumar, who left McKinsey earlier this month, is accused of passing non-public information about Advanced Micro Devices to Galleon founder Raj Rajaratnam. Kumar was an adviser to the microprocessor company while at McKinsey.
But he was allegedly not the only source for information about AMD: Hector Ruiz, the company’s former chairman and CEO, is said to have passed tips on to Danielle Chiesi, a former executive at hedge fund New Castle Partners and Rajaratnam’s co-defendant.
If he pleads guilty, Kumar would be the seventh person to do so in the Galleon case. Three more may do so shortly: Prosecutors delayed those indictments when they charged Rajaratnam and Chiesi earlier this month. Both have pleaded not guilty.