Raj Rajaratnam/Galleon Group, Anil Kumar, and Rajat Gupta insider trading cases

Galleon Group caseGalleon insider trading caseinsider trading caseDanielle ChiesiGalleon Group insider tradingGalleon Group insider trading casesGalleon Group, Anil Kumar, and Rajat Gupta insider trading casesgovernment investigationinsider trading in 2011Operation Perfect Hedge
The Raj Rajaratnam/Galleon Group, Anil Kumar, and Rajat Gupta insider trading cases are parallel and related civil and criminal actions by the United States Securities and Exchange Commission and the United States Department of Justice against three friends and business partners: Galleon hedge fund founder-owner Raj Rajaratnam and former McKinsey & Company senior executives Anil Kumar and Rajat Gupta.wikipedia
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Preet Bharara

Preet
Gupta's lawyer wrote in an e-mail quoted in Bloomberg, “Any allegation that Rajat Gupta engaged in any unlawful conduct is totally baseless .... He did not trade in any securities, did not tip Mr. Rajaratnam so he could trade, and did not share in any profits as part of any quid pro quo.” "The tips generated 'illicit profits and loss avoidance' of more than $23 million, the [SEC] alleged in [the] lawsuit. 'Rajat Gupta was entrusted by some of the premier institutions of American business to sit inside their boardrooms, among their executives and directors, and receive their confidential information so that he could give advice and counsel,' said Manhattan U.S. Attorney Preet Bharara, whose office is prosecuting the case."
From 2009 to 2012 (and ongoing), Bharara's office oversaw the Galleon Group insider trading investigation against Raj Rajaratnam, Rajat Gupta, Anil Kumar and 60+ others.

Anil Kumar

The Raj Rajaratnam/Galleon Group, Anil Kumar, and Rajat Gupta insider trading cases are parallel and related civil and criminal actions by the United States Securities and Exchange Commission and the United States Department of Justice against three friends and business partners: Galleon hedge fund founder-owner Raj Rajaratnam and former McKinsey & Company senior executives Anil Kumar and Rajat Gupta. Rajaratnam was found guilty on all 14 charges and sentenced to 11 years in prison for profiting from tips he received from Robert Moffat, Anil Kumar, Rajiv Goel, and Roomy Khan.
Former mentor Rajat Gupta was later arrested by the FBI in a related case, prompting inquiries into McKinsey's senior leadership and business model.

McKinsey & Company

McKinseyMcKinsey and CompanyMcKinsey & Co
The Raj Rajaratnam/Galleon Group, Anil Kumar, and Rajat Gupta insider trading cases are parallel and related civil and criminal actions by the United States Securities and Exchange Commission and the United States Department of Justice against three friends and business partners: Galleon hedge fund founder-owner Raj Rajaratnam and former McKinsey & Company senior executives Anil Kumar and Rajat Gupta. The Wall Street Journal reported in April that a former member of the board of directors of Goldman Sachs and former McKinsey & Company chief executive Rajat Gupta told Rajaratnam about Berkshire's investment before it became public. Coverage of the event noted that Anil Kumar — who, like Gupta, had graduated from IIT, was a longtime highly regarded senior partner at McKinsey, and had also co-founded the ISB — had already pleaded guilty to charges in the same case.
Former McKinsey senior executives, Rajat Gupta and Anil Kumar, were among those convicted in a government investigation into insider trading for sharing inside information with Galleon Group hedge fund owner Raj Rajaratnam.

Rajat Gupta

Rajat Kumar GuptaRajat Nanwal
The Raj Rajaratnam/Galleon Group, Anil Kumar, and Rajat Gupta insider trading cases are parallel and related civil and criminal actions by the United States Securities and Exchange Commission and the United States Department of Justice against three friends and business partners: Galleon hedge fund founder-owner Raj Rajaratnam and former McKinsey & Company senior executives Anil Kumar and Rajat Gupta. The Wall Street Journal reported in April that a former member of the board of directors of Goldman Sachs and former McKinsey & Company chief executive Rajat Gupta told Rajaratnam about Berkshire's investment before it became public. On October 26, 2011 the United States Attorney's Office filed charges against Rajat Gupta.

Galleon Group

Galleon scandal
In January 2010 he pleaded guilty to insider trading charges and was the government's star witness in March 2011 in U.S. v Rajaratnam against his billionaire friend and Galleon Group founder Raj Rajaratnam.
Also see Galleon Group, Anil Kumar, and Rajat Gupta insider trading cases

Goldman Sachs

Goldman Sachs InternationalGoldman, Sachs & Co.Goldman Sachs Group
The Wall Street Journal reported in April that a former member of the board of directors of Goldman Sachs and former McKinsey & Company chief executive Rajat Gupta told Rajaratnam about Berkshire's investment before it became public. On April 15, 2010, the Wall Street Journal reported that federal prosecutors in the United States were investigating Gupta's involvement in providing insider information to Galleon hedge-fund founder Raj Rajaratnam during the financial crisis, in particular the $5 billion Berkshire Hathaway investment in Goldman Sachs at the height of the financial crisis in Financial crisis of 2007–2008#Impact on financial markets.
Gupta was convicted in June 2012 on insider trading charges stemming from Galleon Group case on four criminal felony counts of conspiracy and securities fraud.

United States Department of Justice

Department of JusticeU.S. Department of JusticeJustice Department
The Raj Rajaratnam/Galleon Group, Anil Kumar, and Rajat Gupta insider trading cases are parallel and related civil and criminal actions by the United States Securities and Exchange Commission and the United States Department of Justice against three friends and business partners: Galleon hedge fund founder-owner Raj Rajaratnam and former McKinsey & Company senior executives Anil Kumar and Rajat Gupta.

Raj Rajaratnam

Rajakumaran
The Raj Rajaratnam/Galleon Group, Anil Kumar, and Rajat Gupta insider trading cases are parallel and related civil and criminal actions by the United States Securities and Exchange Commission and the United States Department of Justice against three friends and business partners: Galleon hedge fund founder-owner Raj Rajaratnam and former McKinsey & Company senior executives Anil Kumar and Rajat Gupta. In January 2010 he pleaded guilty to insider trading charges and was the government's star witness in March 2011 in U.S. v Rajaratnam against his billionaire friend and Galleon Group founder Raj Rajaratnam. On April 15, 2010, the Wall Street Journal reported that federal prosecutors in the United States were investigating Gupta's involvement in providing insider information to Galleon hedge-fund founder Raj Rajaratnam during the financial crisis, in particular the $5 billion Berkshire Hathaway investment in Goldman Sachs at the height of the financial crisis in Financial crisis of 2007–2008#Impact on financial markets.

Insider trading

inside informationinsider informationinsider dealing
The charges stemmed from an investigation by the United States Attorney's Office into allegations that Rajaratnam conspired in insider trading of stock for several large companies.

Rajiv Goel

Rajaratnam was found guilty on all 14 charges and sentenced to 11 years in prison for profiting from tips he received from Robert Moffat, Anil Kumar, Rajiv Goel, and Roomy Khan.

Federal Bureau of Investigation

FBIFBI agentF.B.I.
Former mentor Rajat Gupta was later arrested by the FBI in a related case, prompting inquiries into McKinsey's senior leadership and business model.

U.S. Securities and Exchange Commission

Securities and Exchange CommissionSECUnited States Securities and Exchange Commission
The Raj Rajaratnam/Galleon Group, Anil Kumar, and Rajat Gupta insider trading cases are parallel and related civil and criminal actions by the United States Securities and Exchange Commission and the United States Department of Justice against three friends and business partners: Galleon hedge fund founder-owner Raj Rajaratnam and former McKinsey & Company senior executives Anil Kumar and Rajat Gupta.

New Silk Route

Gupta, Rajaratnam, and Kumar were all close friends and had founded the $1.3-billion private equity firm New Silk Route together, though Rajaratnam and Kumar withdrew before the firm began operation.

United States Attorney

U.S. AttorneyUnited States District AttorneyU.S. Attorney's Office
On October 26, 2011 the United States Attorney's Office filed charges against Rajat Gupta.

Board of directors

Board of Trusteesdirectorboard
Gupta's lawyer wrote in an e-mail quoted in Bloomberg, “Any allegation that Rajat Gupta engaged in any unlawful conduct is totally baseless .... He did not trade in any securities, did not tip Mr. Rajaratnam so he could trade, and did not share in any profits as part of any quid pro quo.” "The tips generated 'illicit profits and loss avoidance' of more than $23 million, the [SEC] alleged in [the] lawsuit. 'Rajat Gupta was entrusted by some of the premier institutions of American business to sit inside their boardrooms, among their executives and directors, and receive their confidential information so that he could give advice and counsel,' said Manhattan U.S. Attorney Preet Bharara, whose office is prosecuting the case."

Senior management

executiveexecutivesmanagement team
Gupta's lawyer wrote in an e-mail quoted in Bloomberg, “Any allegation that Rajat Gupta engaged in any unlawful conduct is totally baseless .... He did not trade in any securities, did not tip Mr. Rajaratnam so he could trade, and did not share in any profits as part of any quid pro quo.” "The tips generated 'illicit profits and loss avoidance' of more than $23 million, the [SEC] alleged in [the] lawsuit. 'Rajat Gupta was entrusted by some of the premier institutions of American business to sit inside their boardrooms, among their executives and directors, and receive their confidential information so that he could give advice and counsel,' said Manhattan U.S. Attorney Preet Bharara, whose office is prosecuting the case."

Wharton School of the University of Pennsylvania

Wharton SchoolWharton School of BusinessThe Wharton School
Rajaratnam and Kumar had attended Wharton business school together in the 1980s.

Warren Buffett

Warren E. BuffettWarren BuffetWarren Edward Buffett
It said he also conspired to get confidential information on the $5 billion purchase by Warren Buffett’s Berkshire Hathaway of Goldman preferred stock before the September 2008 announcement of that transaction.

Berkshire Hathaway

FlightSafety InternationalBH MediaBerkshire Hathaway Inc.
It said he also conspired to get confidential information on the $5 billion purchase by Warren Buffett’s Berkshire Hathaway of Goldman preferred stock before the September 2008 announcement of that transaction. On April 15, 2010, the Wall Street Journal reported that federal prosecutors in the United States were investigating Gupta's involvement in providing insider information to Galleon hedge-fund founder Raj Rajaratnam during the financial crisis, in particular the $5 billion Berkshire Hathaway investment in Goldman Sachs at the height of the financial crisis in Financial crisis of 2007–2008#Impact on financial markets.

IBM

International Business MachinesIBM CorporationInternational Business Machines Corporation

Intel

Kohlberg Kravis Roberts

KKRKohlberg Kravis Roberts & Co.Kohlberg Kravis Roberts & Co
At the time this was seen as a reaction to the insider trading implications; however, wiretaps released over a year later in U.S. v Rajaratnam of Anil Kumar speaking to Rajaratnam reveal an anticipated conflict-of-interest with a senior advisory role at Kohlberg Kravis Roberts.

Financial crisis of 2007–08

financial crisis of 2007–2008global financial crisis2008 financial crisis
On April 15, 2010, the Wall Street Journal reported that federal prosecutors in the United States were investigating Gupta's involvement in providing insider information to Galleon hedge-fund founder Raj Rajaratnam during the financial crisis, in particular the $5 billion Berkshire Hathaway investment in Goldman Sachs at the height of the financial crisis in Financial crisis of 2007–2008#Impact on financial markets.

Indian Institutes of Technology

Indian Institute of TechnologyIITIITs
Coverage of the event noted that Anil Kumar — who, like Gupta, had graduated from IIT, was a longtime highly regarded senior partner at McKinsey, and had also co-founded the ISB — had already pleaded guilty to charges in the same case.