Guilty ex-ISB boss to pay fine

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Former director of McKinsey & Co and Indian School of Business (ISB) Anil Kumar will pay a fine of $2.8 million to settle the charges filed by the US market regulator SEC against him in the multi-billion dollar Galleon insider-trading scam.
Earlier this year, the 51-year-old Indian-origin Kumar had pleaded guilty and admitted that he had given confidential details to the Galleon hedge fund’s billionaire founder, Raj Rajaratnam, who is the prime accused in the same multi-billion dollar fraud. Apart from Kumar and Rajaratnam, nearly 20 others have already been charged in this scam.
The Securities and Exchange Commission on Monday said Kumar had agreed to pay a fine of $ 2.8 million to settle the charges against him. As per the settlement, Kumar would pay “disgorgement in the amount of $2.6 million, plus prejudgment interest of $190,621, totalling $2,790,621,” SEC said in a statement.
Further, the court would decide whether Kumar is liable to pay any civil penalty. “Kumar has agreed to cooperate with the SEC in connection with this action and related probe,” the regulator said.
At the time of the complaint in late 2009, Kumar was a director at global consultancy McKinsey. The complaint had accused Rajaratnam of doing unlawful trading based on inside information of companies.
“It further alleged that Kumar had acquired non-public information while working as a McKinsey consultant and passed information to Rajaratnam,” the regulator said.