MANHATTAN (CN) – A former senior partner at McKinsey & Co. on Thursday pleaded guilty to conspiracy and securities fraud in what federal prosecutors call the biggest hedge fun inside trading case in history. Anil Kumar pleaded guilty to conspiring to commit inside trading crimes with Raj Rajaratnam, a partner of Galleon Management and portfolio manager of the Galleon Technology Funds, the U.S. Attorney’s Office said.
Rajaratnam paid Kumar up to $1 million a year for his inside tips, prosecutors said. The men met at business school in the 1980s. Prosecutors say Rajaratnam made $19.7 million for Galleon from the inside information, in addition to $16.8 million for himself. Rajaratnam faces inside trading charges for that.
Among the companies in which the inside deals were made were Advanced Micro Devices and eBay, prosecutors said.Kumar, 51, of Saratoga, Calif., is cooperating with prosecutors. He will be sentenced on March 26