Galleon Management, LP, et al.

U.S. Securities and Exchange Commission

Litigation Release No. 21526 / May 17, 2010

SEC v. Galleon Management, LP, et al., Civil Action No. 09-CV-8811 (SDNY) (JSR)

SEC Obtains Consent Order and Judgment as to Defendant Anil Kumar

The SEC announced that, on May 17, 2010, The Honorable Jed S. Rakoff, United States District Judge, United States District Court for the Southern District of New York, entered a Consent Order and Judgment as to Defendant Anil Kumar ("Kumar") in the SEC's insider trading case, SEC v. Galleon Management, LP, et al., 09-CV-8811 (S.D.N.Y.) (JSR), filed on October 16, 2009, against Raj Rajaratnam ("Rajaratnam"), Galleon Management, LP ("Galleon"), Kumar, and others. Rajaratnam is the founder and a Managing General Partner of Galleon, a New York hedge fund, which at the time of the alleged insider trading had billions of dollars under management. When the SEC's complaint was filed, Kumar, a friend of Rajaratnam's and a Galleon investor, was a director at the global consulting firm McKinsey & Co. ("McKinsey"). The SEC alleged that Rajaratnam unlawfully traded based on inside information involving numerous companies. It further alleged that Kumar acquired material non-public information while working as a McKinsey consultant and passed that information to Rajaratnam, who traded on it. The SEC charged Rajaratnam and Kumar with violations of Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder, and Section 17(a) of the Securities Act of 1933 ("Securities Act").

The Consent Order and Judgment entered against Kumar permanently enjoins him from violating the antifraud provisions of the federal securities laws, Section 10(b) of the Exchange Act, Exchange Act Rule 10b-5, and Section 17(a) of the Securities Act. It also orders him to pay disgorgement in the amount of $2.6 million, plus prejudgment interest in the amount of $190,621, for a total of $2,790,621. The order provides that the Court will determine at a later date whether any civil penalty is appropriate. Kumar has agreed to cooperate with the SEC in connection with this action and related investigations.

For further information, see Litigation Release Nos. 21255 (October 16, 2009), 21284 (November 5, 2009), and 21397 (January 29, 2010).