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Rajat Gupta insider trading scam: Anil Kumar spared jail time for cooperation with govt

Former Mckinsey partner Anil Kumar has been spared jail time, for his "extraordinary" cooperation led to the conviction of Wall Street tycoons Raj Rajaratnam and Rajat Gupta for insider trading.

twitter-logo PTI   New York     Last Updated: July 20, 2012  | 00:00 IST

Former Mckinsey partner Anil Kumar, whose "extraordinary" cooperation led to the conviction of Wall Street tycoons Raj Rajaratnam and Rajat Gupta for insider trading, has been spared jail time.

53-year-old Kumar, was, however, sentenced to two years probation on securities fraud charges and ordered to pay a $25,000 fine and forfeit $2.26 million by US Circuit Court Judge Denny Chin in Manhattan on Thursday.

Earlier, federal prosecutors, in a letter to the court, had described Kumar's cooperation in the insider trading case as "nothing short of extraordinary."

Full Coverage: The Rajat Gupta trial

"Kumar's cooperation with the Government was absolutely essential in two of the most important securities fraud trials in history," the letter said, referring to the the trials of former hedge-fund manager Raj Rajaratnam and Rajat Gupta, a former director at Goldman Sachs Group Inc. Both were found guilty in the case.

Kumar faced a maximum prison sentence of 20 years but was given a lenient sentence due to his extensive cooperation with the government.

"I stand in this court ... completely and totally shamed by the conduct that has brought me before your honour," Kumar said at his court hearing. "I strayed from my core beliefs that I stood for all my life."

Highlights of trial: Day 1 | Day 2 | Day 3 | Day 4 | Day 5 | Day 6 | Day 7 | Day 8 | Day 9 | Day 10 | Day 11 | Day 12 | Day 13 | Day 14 | Day 15 | Day 16

Judge Chin on Thursday said: "I am persuaded that this was aberrational conduct and that Mr Kumar has led a law-abiding and productive life."

"I am persuaded he cooperated not to get a lighter sentence but to make amends for what he did," he said.

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