Anil Kumar, former director of global management consulting firm McKinsey& Co, pleaded guilty to charges for securities fraud charges. Kumar admitted to illegally turning $2.6 million in profit by providing Galleon Group founder, Raj Rajaratnam with insider stock information.
The 51-year-old entered the plea in U.S. District Court in Manhattan as part of cooperation deal angled to reinforce the case against billionaire hedge-funder and former business-school classmate, Raj Rajaratnam.
Rajaratnam took in over $19 million as a result of insider information provided to him by Kumar, bringing the grand total of illegal dollars to $36 million and heightening the charges against him. In exchange for his advice, Kumar was given million and multi-million dollar bonuses on top of an annual $500,000.
Kumar was emotional at the time of his plea.
Rajartnam, 52, is currently free on a bail of $100 million.
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