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Inside Job

The woman who was sacrificed to nab Raj Rajaratnam


IN DECEMBER 2006, Anil Kumar, a senior partner at the global consultancy firm McKinsey & Company, sent a two-word email to Raj Rajaratnam, the CEO of the Galleon Group, a multi-billion-dollar hedge fund based in New York. The email said, simply, “Manju Das.”

The words were a reminder to Rajaratnam of where to send a payment of one million dollars to Kumar. He had given the Galleon CEO valuable insider information on an upcoming corporate deal: the acquisition of the Canadian semiconductor company ATI Technologies by the American firm Advanced Micro Devices. Tipped off by Kumar as negotiations proceeded, Galleon built up a strong position in ATI, then sold all its shares after the sale was publicly announced. It made a profit of more than $20 million on the deal.

From around 2003 to 2009, Rajaratnam paid Kumar for insider information on a number of McKinsey clients, for whom Kumar served as consultant—among them Advanced Micro Devices, Spansion, eBay and Business Objects. The Galleon CEO sent quarterly payments of $125,000 to an offshore company called Pecos Trading, in Switzerland. This money was rerouted and sent back to Galleon in the name of Kumar’s domestic employee, Manju Das, and reinvested in Galleon’s funds.

Nilita Vachani is a documentary film-maker, writer and educator who lives in New York.


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Readers' Comments

19 thoughts on “Inside Job”

This is what journalism should be: challenging, thought-provoking and deeply human. Nilita raises some critical questions about how members of the educated upper and upper middle classes in India treat labor, especially domestic help, and deprive them of basic human rights.

The article exposes hypocracy of rich and so called educated indians living inAmerica. mrpreet brara an mr anil kumar”former employers mcinsay should go after and provide justiceto the lady .enough publicity should be given such that mrkumar is prevented from teaching

Anil was known to be a self-centered p***k even when in McKinsey, a famously team-oriented culture. That he was also a louse comes as scant surprise, and is unfortunately all too typical of well-off Indians who take their domestic help to the U.S. It seems almost unbelievable that Anil would deny his domestic help a sum of $15K, when he very likely easily makes many times that much money off just his investments in a month.

I’m praying that he’s not truly reformed, gets nailed again and this time gets the proverbial book thrown at him for a hefty term. He would deserve it richly.

Reporting on the supposed misdeeds of high-profile Indian-Americans has become a popular (and profitable) pastime of a certain breed of Indian-born journalists. To be totally fair however, Ms Chalani would do well to investigate with the same tenacity some big Wall Street honchos, who have no Indian connection whatsoever. One would suppose there are worse misdeeds than this.

A well researched article …of the three this person should be punished the maximum unfortunately he is the one who has been let off. Hope the lady Manju Das will find justice in the end.

Thank you Caravan for producing such indept articles. To everyone else – yes people do have the ability to read in depth articles. How we treat those less well off than ourselves is a reflection on how far we have to go. As indivuduals, as a society and a country we have a very long road ahead.

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