He is believed to be David Palecek, a former classmate of Rajaratnam's brother Rengan. In court Jonathan Streeter, a federal prosecutor, has mentioned a third, as yet unnamed, McKinsey executive. Gupta has been named as a co-conspirator and accused of passing inside information on to Rajaratnam about companies including Goldman and P&G. Kumar was a protegé of Raj Gupta, former head of McKinsey and a former director of Goldman Sachs and Procter & Gamble. "He wanted to move to an arrangement where he could monitor the benefits and share the profits," he testified. Kumar alleged the hedge fund manager pressed him for financial details on AMD. Kumar said Rajaratnam paid him in the name of Kumar's housekeeper and passed him confidential documents about the chipmaker Intel, rival of Kumar's McKinsey client AMD. Kumar, one of the prosecution's star witnesses, has agreed to forfeit $2.7m in fees and profits he received from Galleon. Rajaratnam is accused of making $50m (£31m) from these and other tips and faces up to 20 years in prison if convicted.Īnil Kumar, a former senior McKinsey partner who has pleaded guilty to securities fraud and is co-operating with the government, took the stand for the second day on Monday. According to prosecutors, Raj Rajaratnam, billionaire founder of the Galleon hedge fund, was fed lucrative and illegal tips about McKinsey clients by some of the consultancy's top executives.
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