Anil Kumar, Co-accused with Rajaratnam and Gupta, Gets Probation, Fines

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New York – Anil Kumar, an Indian American who helped convict Wall Street tycoons Raj Rajaratnam and Rajat Gupta for insider trading, was successful on Thursday in obtaining a sentence of only two years probation on securities fraud charges and was ordered to pay a fine of only $25,000, while forfeiting $2.26 million.

Kumar was sentenced today in Manhattan federal court by US Circuit Judge Denny Chin, according to the Federal Bureau of Investigation (FBI) statement release on Thursday.

According to the FBI, Rajaratnam paid Kumar nearly $2 million from 2004 through 2009 for providing “inside information relating to corporate transactions, revenue, and other financial information of McKinsey’s clients to Rajaratnam in anticipation that Rajaratnam would trade, based in part on that information.”

Kumar was arrested along with hedge fund founder Rajaratnam in October 2009, but decided to plead guilty early in 2010 to one count of conspiracy to commit securities fraud and one count of securities fraud. He faced a maximum prison sentence of 20 years.

Commenting on his sentence, Judge Chin noted that he was “persuaded that this was aberrational conduct and that Mr. Kumar has led a law-abiding and productive life.”

“Anil Kumar is a truly extraordinary man. But his involvement with Mr. Rajaratnam, he has led a life devoted to work, family and improving the lives of and opportunities for countless people in Indian and the United States,” are the first sentences of a 72 page court document unsealed on Wednesday to plead a lenient sentence for 53 year old Kumar.

The extensive document outlined his life as a meritorious student throughout and every word cried out saying he was a brilliant mind and decided to make amends for his wrongdoing in this episode by mending his relationships with family, society and doing good for the people, according to the documents submitted to the court.

Echoing these sentiments, Ravi Batra, an attorney based in New York said, “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.”

“The Court today, taking stock of the prosecutors’ favorable view towards him, as well as the juries’ trust in him, allowed him to remain free,” added Batra.

Announcing the decision on Thursday, Preet Bharara, the United States Attorney for the Southern District of New York, praised the investigative work of the Federal Bureau of Investigation. He also thanked the US Securities and Exchange Commission.

Bharara serves as a co-chair of the Securities and Commodities Fraud Working Group, a part of the interagency Financial Fraud Enforcement Task Force, established by President Barack Obama to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. (IATNS)

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