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

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

Common Risk Parity Misperceptions

Jul 16 2014 | 11:02am ET

Over the past few years, risk parity has become a component of most investors’...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note