Galleon witness testifies

 
City A.M. Reporter
A DISGRACED former McKinsey & Co partner has testified that Galleon fund manager Raj Rajaratnam paid him a $1m (£617,856) “bonus” for tipping him about an acquisition by chip-maker Advanced Micro Devices (AMD), a client of the consulting firm.

Anil Kumar told jurors yesterday he supplied confidential details about AMD’s 2006 purchase of graphics chip-maker ATI Technologies to Rajaratnam, who is on trial on criminal charges of running a vast insider trading network.

“He called me at home and he said, ‘I just wanted to thank you. That was fantastic, we are all cheering you at the office right now,’” Kumar testified in Manhattan federal court. “That made me very nervous.”

Prosecutors in the trial are expected to name David Palecek, a McKinsey partner who died last year, as a third target for Raj Rajaratnam to recruit to his alleged insider trading ring.