Prosecutors Seek Leniency For 'Extraordinary' Witness Kumar

Jul 17 2012 | 12:28pm ET

Anil Kumar helped federal prosecutors win insider-trading convictions against Galleon Group founder Raj Rajaratnam and former McKinsey & Co. chief Rajat Gupta. Now, those prosecutors are trying to help him win leniency for his own crimes.

Prosecutors called Kumar's cooperation with authorities "nothing short of extraordinary" in a letter to U.S. District Judge Denny Chin, who will sentence Kumar on Thursday. The former McKinsey partner faces up to 25 years in prison, but will likely receive much less and may even avoid jailtime.

"From the first day of Kumar's cooperation through the present, he's been one of the best and most important cooperating witnesses that the [prosecutors] working on the Rajaratnam investigation have worked with in securities fraud cases," prosecutors wrote. In addition, that help came in "two of the most important securities fraud trials in history."

Kumar had been a longtime friend of Rajaratnam's, and considered Gupta his mentor at McKinsey. Rajaratnam was sentenced to 11 years in prison for insider-trading, and Gupta faces up to 25 years when he is sentenced for passing tips to Rajaratnam in October.

"We are very pleased that the United States Attorney's Office thought so highly of Mr. Kumar's cooperation," Kumar's lawyer, Gregory Morvillo, said. "We think it is a very strong letter."

Kumar pleaded guilty two years ago to securities fraud and conspiracy, admitting that he passed confidential information to Rajaratnam. He is currently free on bail.


In Depth

U.S. Treasury Moves on Reinsurance Loophole

Apr 24 2015 | 5:11pm ET

The U.S. Treasury Department has released proposed rules aimed at limiting the ability...

Lifestyle

Artivest Announces Funding Round Led by KKR & Co.

May 4 2015 | 9:56am ET

Artivest, a startup that provides individual investors with access to private equity...

Guest Contributor

Starting a ‘40 Act Fund Family? Don’t Forget Your Board

Apr 30 2015 | 7:18am ET

The convergence of the hedge fund and mutual fund worlds continues unabated, as...

 

Editor's Note