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

JOBS Act Propels Real-Estate Crowdfunding Platform

Oct 21 2014 | 2:57am ET

If D.J. Paul were a real estate development, he would be described as “multi-use...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.