Inside Job

The woman who was sacrificed to nab Raj Rajaratnam

01 November 2015
In 2011, the hedge fund billionaire Raj Rajaratnam was convicted of insider trading and sentenced to 11 years in prison.
lucas jackson / reuters

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IN DECEMBER 2006, Anil Kumar, a senior partner at the global consultancy firm McKinsey & Company, sent a two-word email to Raj Rajaratnam, the CEO of the Galleon Group, a multi-billion-dollar hedge fund based in New York. The email said, simply, “Manju Das.”

The words were a reminder to Rajaratnam of where to send a payment of one million dollars to Kumar. He had given the Galleon CEO valuable insider information on an upcoming corporate deal: the acquisition of the Canadian semiconductor company ATI Technologies by the American firm Advanced Micro Devices. Tipped off by Kumar as negotiations proceeded, Galleon built up a strong position in ATI, then sold all its shares after the sale was publicly announced. It made a profit of more than $20 million on the deal.

Nilita Vachani Nilita Vachani is a documentary film-maker, writer and educator who lives in New York.

Keywords: corruption business crime finance Court Anil Kumar
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