rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » Anil Kumar gets away with two-year probation

Anil Kumar gets away with two-year probation

Last updated on: July 20, 2012 09:33 IST

Anil Kumar gets away with two-year probation

     Next

Next
Suman Guha Mozumder in New York

In October 2009, when the Federal Bureau of Investigations agents told him he was under arrest for insider trading, Anil Kumar, former executive at McKinsey and Co was said to have fainted.

Nearly three years later. Kumar, 53, came out from a federal courtroom in Southern District of New York, all smiles as US Circuit Judge Denny Chin let him off with two years probation in stead of five years prison term that was expected. He hugged his lawyer as he came out of the court.

Click NEXT to read more...


Image: Anil Kumar leaves federal court in New York.
Photographs: Keith Bedford/Reuters

     Next

Anil Kumar gets away with two-year probation

Prev     Next
Prev

Next

Kumar was an important witness for the prosecution in its case against Galleon chief Raj Rajaratnam as also the former Goldman Sachs board member Rajat Gupta. In addition to probation, Kumar was ordered to forfeit $2.26 million for what he got illegally. Chin also ordered Kumar to pay a $25,000 fine.

'I am persuaded that this was aberrational conduct and that Mr. Kumar has led a law-abiding and productive life,' Chin said. 'I am persuaded he cooperated not to get a lighter sentence but to make amends for what he did,' he said.

Click NEXT to read more...


Image: Raj Rajaratnam arrives at Manhattan Federal Court in New York, a file photo.
Photographs: Lucas Jackson/Reuters

Prev     Next

Anil Kumar gets away with two-year probation

Prev     Next
Prev

Next

Kumar said at the sentencing that he was ashamed of his deed. 'I stand in this court today completely and totally shamed by the conduct that has brought me before your honor,' Kumar said at the sentencing hearing.

"It has brought me pain and suffering, and dishonor to my family, my friends and my business colleagues. I strayed from my core beliefs that I stood for my entire life.'

Kumar had testified at the trials of both Rajaratnam acknowledging that he passed inside information to Rajaratnam. He also testified in the prosecution's case against Gupta.

Click NEXT to read more...


Image: Rajat Gupta leaves Manhattan Federal Court, a file photo.
Photographs: Lucas Jackson/Reuters

Prev     Next

Anil Kumar gets away with two-year probation

Prev     Next
Prev

Next

Kumar worked at McKinsey from 1986 to November 2009. He pleaded guilty in January 2010 to one count each of conspiracy and securities fraud.

'Kumar's testimony was nothing short of devastating,' the prosecutors noted in a sentencing memorandum for Kumar. Kumar was credible, precise and fully corroborated,' the New York Times reported quoting prosecutors.

"Anil Kumar, who had lost his way, enthralled by wealth-without-a-soul, found his way back to society by his candid repentance and recounting on the witness stand during both Raj Rajaratnam and Rajat Gupta trials, with each jury trusting him,": noted lawyer Ravi Batra, who has been following the case, told this correspondent in response to a question.

Click NEXT to read more...


Image: A Goldman Sachs sign is seen on the floor of the New York Stock Exchange.
Photographs: Brendan McDermid/Reuters

Prev     Next

Anil Kumar gets away with two-year probation

Prev     Next
Prev

Next

"The Court today, taking stock of the prosecutors' favorable view towards him, as well as the twin jury's trust in him, allowed him to remain free. The law is a many-splendored thing, and has the ability to forgive those who honor it," Batra told India Abroad.

During trial, the NYT said, Kumar was torn about his transgressions. 'He knew he was committing a crime and had violated the trust of his consulting clients, but he said he wanted the money and favors a man like Rajaratnam could bestow on him,' it said.

Click NEXT to read more...


Image: Traders work on the floor of the New York Stock Exchange.
Photographs: Keith Bedford/Reuters

Prev     Next

Anil Kumar gets away with two-year probation

Prev     More
Prev

More

"The real benefit to prosecutors after securing a guilty plea or a guilty verdict is that they can do a 'Spock mind-meld' with that defendant, if that defendant is willing to own up to her/his misconduct and give evidence against other un-charged or under-charged defendants" Batra said in response to a question if the prosecutors might have cut a deal with the defendant for lesser sentence in lieu of their cooperation.

"That is how a Neutron Bomb is exploded by prosecutors against criminality while protecting needed institutions," Batra said.

"Rajat Gupta, if he were to cooperate and spill his guts, he could be that Neutron Bomb, that once exploded, would serve to restore public confidence in Wall Street and bring honour back to wealth."


Image: Kumar was torn about his transgressions, said the NYT.
Photographs: Eric Thayer/Reuters

Prev     More