An Indian-American former McKinsey consultant has told a US court that he “committed a crime” by passing on secret information to convicted hedge fund founder Raj Rajaratnam after the Sri Lankan “chided and taunted” him for not knowing enough about what was happening at various firms.
Anil Kumar, 53, is a government witness in the insider trading trial of his mentor and former Goldman Sachs director Rajat Gupta.
Kumar has pleaded guilty to criminal charges of passing inside information to Rajaratnam and testfied against him last year.
Kumar told jurors hearing the Gupta case that he gave inside information to Rajaratnam, his Wharton batchmate, after the Sri Lankan taunted him for not knowing enough about companies, including regarding chipmaker Advanced Micro Devices (AMD), despite being a partner at McKinsey.
“Rajaratnam said he knew more about AMD than I did. I tried to show him I had more information about AMD and other companies and committed a crime,” Kumar testified.