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Will the Jury Believe Anil Kumar's Testimony Against Raj Rajaratnam?

Raj Rajaratnam co-founder of the Galleon Group hedge fund.
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Raj Rajaratnam co-founder of the Galleon Group hedge fund.

There are two different ways the jury can take Anil Kumar's testimony, which finished yesterday.

The final argument between the defense and Kumar, the prosecution's witness, basically sums it up.

The defense kept saying to Kumar, you were a legitimate, paid consultant to Galleon. You were paid for legitimate services you provided.

And Kumar said, I only arranged one meeting for Raj. And the guy who I set it up with told me that Raj fell asleep during the meeting.

Here's what happened during Kumar's testimony that suggests Kumar was a legitimate consultant who was paid for his tips, despite his testimony that Raj paid him for illegal, insider information.

The defense's case:

  • Kumar seemed kind of arrogant, and like he had been coached, which could hurt his credibility.
  • Raj told Kumar, "I'm giving him $1 million per year, and he's giving me basically nothing."
  • The "soft dollars" Raj used to pay Anil are used by many companies and they're pretty legitimate, according to John Dowd's cross examination of Kumar.
  • Dowd might have convinced the jury that Kumar was less than truthful on a few things, including McKinsey's role in "the scheme," despite Kumar's laughing them off (literally) as though they're no big deal.

And here's what suggests that Kumar gave Raj inside information.

The prosecution's case:

  • Raj seems aware that he was receiving improper information because he tried to hide it. He explained to his employees at Galleon how to create a fake email chain.
  • Raj had a conversation with a Galleon employee about buying 3.5 million of AMD because of information he would receive "48 hours before."
  • The first argument we heard out of Kumar was essentially "Raj made me use my sick child's housekeeper to hide the money he made me take" -- and it was somewhat convincing
  • Raj's brother, Rengan, seems to know the difference between legal and inside information. On the phone with Raj, relayed a quote from Kumar's protege at McKinsey, David Palecek, that said, "you know the problem is, all my best ideas are inside information." But he offered up details on AMD, so Rengan says, "He's a little dirty."

Here's another example of how the defense could argue that the info Kumar gave to Raj was pretty public and how the prosecution explains it using Raj's relationship with Danielle Chiesi.

This story originally appeared on Business Insider

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