McKinsey’s Tokyo office was in Roppongi: McKinsey & Co. website, http://www.mckinsey.com/global_locations/asia/tokyo.
Logging as many as forty thousand miles a month, being assigned offices in New York and Silicon Valley, and having two home offices: US v. Rajaratnam, Testimony of Anil Kumar, March 14, 2011.
“Cambodia and Angkor Wat were amazing!!”: US v. Rajaratnam, Defense Exhibit 0071, Email from Kumar to Raj Rajaratnam, August 17, 2005.
“I’m here with…Sunil Mittal and Sunil Munjal”: Government Exhibit 616-T, Transcript of a wiretapped conversation between Kumar and Rajaratnam, September 11, 2008.
He had three cell phones, ostensibly to keep McKinsey’s costs down: US v. Rajaratnam, Kumar testimony, March 14, 2011.
He was on a list of about ten people: US v. Gupta, Testimony of Caryn Eisenberg, May 22, 2011.
By 2008, Rajaratnam had made the Forbes 400 list: Rajaratnam ranked 262 on the Forbes 400 list in 2008. See http://www.forbes.com/lists/2008/54/400list08_Raj-Rajaratnam_RUQ2.html.
The fantasy football league in which Rajaratnam was a member: Jon Weinbach, “Wall Street’s $1 Million Fantasy League—Top Financiers Pretend to Build the Best Pretend NFL Team; Trash Talk on the Chat Board,” Wall Street Journal, October 17, 2008.
In February, to mark the victory by Michael Daffy: US v. Gupta, Defense Exhibit 8340, Email from Anita Teglasi to Caryn Eisenberg on February 28, 2008, forwarding an email from Vicki Ramsey at Goldman Sachs regarding details for a trip that day to the Borgata in Atlantic City.
Rajaratnam’s business card did not have his direct line: US v. Gupta, Eisenberg testimony, May 22, 2012.
Lenovo was in serious talks with Fujitsu and following exchange between Kumar and Rajaratnam: US v. Rajaratnam, Government Exhibit 506-T.
The near collapse of Bear and the bank stumping up $3 billion: Kate Kelly, “Crisis on Wall Street—Excerpt Inside the Fall of Bear Stearns—In 72 Nail-Biting Hours an Investment Bank Turned from Healthy to Nearly Insolvent,” Wall Street Journal, May 9, 2009.
The discussion about Hindustan Oil and the subsequent conversation about Lenovo: US v. Rajaratnam, Government Exhibit 506-T.
Rajaratnam had originally planned to join Kumar in Singapore and following conversation: Ibid.
AMD’s Asset-Lite strategy and Kumar’s briefings of Rajaratnam on it: US v. Rajaratnam, Kumar testimony, March 14, 2011.
Kumar’s new position at McKinsey leading the Asia Center: Ibid.
“It will be fantastic” and Rajaratnam’s comparing it to ATI: Ibid.
“It could take two more months”: US v. Rajaratnam, Government Exhibit 506-T.
Rajaratnam’s telling Kumar of Chiesi and her alleged relationship with Ruiz: US v. Rajaratnam, Kumar testimony, March 14, 2011.
After she asked a Galleon analyst for an introduction: Susan Pulliam and Chad Bray, “Key Plotter Pleads Guilty in Galleon,” Wall Street Journal, January 20, 2011.
Chiesi taking to the dance floor alone and changing in and out of slinky dresses: Anita Raghavan, “Power and Pleasure,” Forbes, October 11, 2010.
The Kenny Rogers clambake: Robert A. Guth and Justin Scheck, “The Network: The Rise of Raj: The Man Who Wired Silicon Valley—Fund Boss Built Empire on Charm, Smarts and Information,” Wall Street Journal, December 29, 2009.
“Your value to me is a little bit diminished” and subsequent exchange about Chiesi: US v. Rajaratnam, Kumar testimony, March 14, 2011.
The Business Objects tip and Rajaratnam losing money on the trade after halving his position: US v. Rajaratnam, Kumar testimony, March 14, 2011.
Business Objects’ acquisition by SAP: “SAP Shares Drop on Business Objects Bid,” Associated Press, October 8, 2007.
Galleon’s loss of around $5 million and Rajaratnam being upset: US v. Rajaratnam, Testimony of Rick Schutte, April 12, 2011.
Morgan Stanley’s push for documents attesting to Das being an offshore investor: US v. Rajaratnam, Defense Exhibit 1898, Email from Cliodhna Murphy, MSFS Investor Services, to Shireen Gianchandani, May 21, 2008.
“Let me look into this and see what can be done”: US v. Rajaratnam, Defense Exhibit 1898, Email from Anil Kumar to Shireen Gianchandani, May 21, 2008.
“My concern is with Manju’s mail”: US v. Rajaratnam, Defense Exhibit 0145, Email from Reva Dayal to Anil Kumar, December 19, 2005.
In 2006, Rajaratnam started pressing Kumar to move his money out of the Das account because of possible SEC scrutiny: US v. Rajaratnam, Kumar testimony, March 14, 2011.
Kumar said he knew someone in Switzerland: Ibid.
“From a Morgan Stanley Fund Services perspective”: US v. Rajaratnam, Defense Exhibit 1915, Email from Anil Kumar to Shireen Gianchandani, May 26, 2008.
Morgan Stanley required two proofs of address for Das: US v. Rajaratnam, Defense Exhibit 2191, Email from Shireen Gianchandani to Anil Kumar, July 17, 2008,
“Manju Das comes from a village in the remote area of Bengal”: US v. Rajaratnam, Defense Exhibit 2193, Email from Kumar to Gianchandani, July 17, 2008.
He turned to Dr. Mathur: US v. Rajaratnam, Kumar testimony, March 15, 2011.
The details of Mathur’s clinic, the companies he worked for, and the letter he wrote about Das: US v. Rajaratnam, Defense Exhibit 2490, Attachment to August 13, 2008, email from Kumar to Gianchandani.
“Dear Mr. Mahindroo”: US v. Rajaratnam, Defense Exhibit 2333, Email from Kumar to S. P. Mahindroo, August 1, 2008.
“We will require 2 original or certified”: US v. Rajaratnam, Defense Exhibit 2499, Email from Morgan Stanley’s Sinead Hayes to Kumar, September 8, 2008.
“In India, there are not utility bills”: Ibid., Email from Kumar to Sinead Hayes, September 10, 2008.
“If you can email a pdf copy immediately, that would help a lot”: US v. Rajaratnam, Defense Exhibit 2848, Email from Kumar to HSBC, October 25, 2008.
HSBC said Das had been an account holder since October 20: US v. Rajaratnam, Defense Exhibit 2823, HSBC letter regarding Manju Das, October 25, 2008.
“Please resend a new letter”: US v. Rajaratnam, Defense Exhibit 2848, Email from Kumar to HSBC, October 30, 2008.
Chapter Twenty-Six: The Wire
The conversation between Anil Kumar and Raj Rajaratnam: US v. Rajaratnam, Government Exhibit 523-T, Transcript of a wiretapped conversation between Kumar and Rajaratnam, May 2, 2008.
Rajaratnam was in Washington and heading to Toronto: US v. Rajaratnam, Government Exhibit 524-T-R, Transcript of a wiretapped conversation between Rajaratnam, Kris Chellam, and another Galleon colleague, May 2, 2008.
Kumar and Rajaratnam were in the same Wharton class as Mukesh’s younger brother, Anil: US v. Rajaratnam, Testimony of Anil Kumar, March 14, 2011; Wharton Alumni Directory.
The Ambani brothers lived for the longest time at Sea Wind and Mukesh moved out in 2010: Naazneen Karmali, “Anil Ambani’s Taj Mahal?” Forbes.com, December 6, 2010.
Rajaratnam running into Ambani and Kumar’s conversation with Ambani: US v. Rajaratnam, Government Exhibit 523-T.
“Do you think we should buy some Spansion?”: Ibid.
Minutes after hanging up with Kumar, Rajaratnam phoned Kris Chellam and their exchange: US v. Rajaratnam, Government Exhibit 524-T-R.
Chellam was a regular at Rajaratnam’s famous Super Bowl parties: US v. Rajaratnam, Franks hearing, Government Exhibit 15, FBI memo, June 27, 2007.
“Somebody is gonna put a term sheet for Spansion” and subsequent conversation with Chellam: US v. Rajaratnam, Government 524-T-R.
On March 7, 2008, federal judge Gerard E. Lynch: US v. Rajaratnam, Franks hearing, Testimony of FBI special agent B. J. Kang, October 6, 2010.
The FBI’s monitoring of Rajaratnam’s phone: US v. Rajaratnam, Testimony of FBI special agent Diane Wehner, March 10, 2011.
In mid-April, the SEC’s Andrew Michaelson was lent: Michaelson testified in the Franks hearing that he went to the US attorney’s office in April 2008.
On April 2, Khan admitted she made trad
es in Hilton and Deep Shah was her source: US v. Rajaratnam, Franks hearing, Testimony of Andrew Michaelson, October 5, 2010.
Khan met Shah through her cousin: US v. Whitman, Testimony of Roomy Khan, August 7, 2012.
One day in late 2006, Khan’s cousin called and put Shah on the phone: Ibid.
Khan could not trade on Shah’s first tip because it came on a Friday evening: Ibid.
The deal was announced on Monday as Shah predicted: Ibid.
She paid Shah $10,000 for the Hilton tip: US v. Whitman, Khan testimony, August 8, 2012.
Shah has denied being the source of the Hilton tips: Susan Pulliam, “Galleon Sinks, Informant Surfaces,” Wall Street Journal, October, 22, 2009.
“Didi, this is happening”: US v. Whitman, Khan testimony, August 7, 2012.
Khan getting a phone in the name of her gardener: Ibid.
After nearly two years of Sisyphean frustration: US v. Rajaratnam, Franks hearing, Michaelson testimony, October 5, 2010.
Starting in late March 2008, Goel began briefing Rajaratnam on the Clearwire deal and how he came to know of it: US v. Rajaratnam, Testimony of Rajiv Goel, March 22 and 24, 2011.
The exchange between Goel and Rajaratnam: US v. Rajaratnam, Government Exhibit 502-T, Transcript of a wiretapped conversation between Rajaratnam and Goel, March 19, 2008.
Goel’s kids made fun of the hushed tones in which their father spoke and subsequent conversation: US v. Rajaratnam, Government Exhibit 503-T, Transcript of a wiretapped call between Goel and Rajaratnam, March 20, 2008.
Between March 24 and 25, Galleon bought 385,000 shares of Clearwire stock: US v. Rajaratnam, Government Exhibit 9, All Trading by Manager Code “TMT” in Clearwire Securities on March 24, 2008, and March 25, 2008.
“Oh dude, we’re fucked” and subsequent exchange between the brothers Rajaratnam: US v. Rajaratnam, Government Exhibit 509-T, Transcript of wiretapped conversation between Rengan Rajaratnam and Raj Rajaratnam, March 25, 2008.
Karpel had worked for eighteen years at Mutual Shares: Peter Lattman and William Rashbaum, “A Trader, an FBI Witness, and Then a Suicide,” New York Times, June 2, 2011.
The call between Ephraim Karpel and Zvi Goffer: Ibid.
The FBI approach to Ephraim Karpel: Ibid.
He hanged himself in his Fifth Avenue office: Ibid.
Chapter Twenty-Seven: “I Played Him Like a Finely Tuned Piano”
The FBI agents manning the wire from 6 a.m. until midnight: US v. Rajaratnam, Testimony of FBI special agent Diane Wehner, March 10, 2011.
Trading corporate secrets was “like an orgasm”: James Bandler and Doris Burke, “Dangerous Liaisons at IBM,” Fortune, July 26, 2010.
Conversation between Rajaratnam and Chiesi on July 24: US v. Rajaratnam, Government Exhibit 532-T, Transcript of a wiretapped conversation between Rajaratnam and Chiesi, July 24, 2008.
Within Akamai, the betting was that the stock would drop to $25: Ibid.
The conversation between Chiesi and Rajaratnam on Akamai: Ibid.
Galleon diversified fund returns: US v. Gupta, Government Exhibit 1853, Galleon April 2008 investment presentation attached to email from Ayad Alhadi to Fernando Lamas at UBS, April 18, 2008.
In February, Rajaratnam hired Alhadi: US v. Gupta, Testimony of Ayad Alhadi, May 31, 2012.
The Sberbank board position paid $525,000 in 2008: Duff McDonald, “Rajat Gupta: Touched by Scandal,” Fortune, October 1, 2010.
In 2004, the Bill and Melinda Gates Foundation gave $47 million for AIDS in India: “Bill and Melinda Gates Foundation’s Avahan Initiative Announces $47 Million in Grants to Combat HIV/AIDS in India,” press release, March 16, 2004, http://www.gatesfoundation.org/press-releases/Pages/grants-to-combat-hiv-aids-in-india-040316.aspx.
In March, Gupta joined Alhadi for meetings in the Middle East with investors like the Abu Dhabi Investment Council: US v. Gupta, Alhadi testimony; Government Exhibit 1824, Email from Alhadi to Gupta with schedule of Middle East trip as of March 31, 2008.
In late April, the Abu Dhabi Investment Council said it would invest $50 million: US v. Gupta, Government Exhibit 1857, Email from Alhadi to Gupta, April 28, 2008.
Larry Currie asked for a meeting with Gupta and said the National Commercial Bank would start with a $25 to $30 million investment: US v. Gupta, Alhadi testimony; Government Exhibit 1844, Email from Ayad Alhadi to Rajat Gupta, April 8, 2008; Government Exhibit 1856, Email from Alhadi to Gupta, April 25, 2008.
Alhadi suspected Gupta’s Goldman link would help National Commercial Bank gain more comfort with Galleon: US v. Gupta, Government Exhibit 1852, Email from Alhadi to Gupta on April 17, 2008, where he says Currie enjoyed meeting Gupta and “I believe that meeting helped accelerate his comfort level with Galleon.”
He now spoke of raising $600 million for a telecommunications fund: US v. Gupta, Testimony of Anil Kumar, June 1, 2012.
“It’s now reached a point where it’s physically”: US v. Rajaratnam, Government Exhibit 522-T, Transcript of a wiretapped conversation between Kumar and Rajaratnam, May 28, 2008.
Gupta’s discussions with KKR and Goldman’s reaction to them: US v. Gupta, Testimony of Lloyd Blankfein, June 4, 2012.
The issue came to a head in Beijing: Letter written by Anita Gupta on behalf of her husband ahead of his sentencing.
Gupta’s expected $5 million salary at KKR: US v. Rajaratnam, Government Exhibit 553-T-K, Transcript of wiretapped conversation on August 15, 2008, between Rajaratnam and Kumar where Rajaratnam says the KKR position would pay “about five million a year, with upside.” US v. Gupta, Blankfein testimony, June 4, 2012.
It was Gupta’s desire to be in the “billionaire [sic] circle”: Ibid.
Schwarzman’s contributions to the New York Public Library and its name change: Robin Pogrebin, “A $100 Million Donation to the New York Public Library,” New York Times, March 11, 2008.
Rajaratnam telling Gupta to take KKR in a “heartbeat”: US v. Rajaratnam, Government Exhibit 534-T-R, Transcript of a wiretapped conversation between Rajaratnam and Gupta, July 29, 2008.
“He’ll divide his week into a hundred different parts” and following conversation with Kumar: US v. Rajaratnam, Government Exhibit 522-T.
Rajaratnam was mulling giving Gupta a 10 percent stake in Galleon International, but Gupta was angling for more: Rajaratnam’s version of his negotiations with Gupta is supported by at least one other person who knows the two men.
On Wednesday, July 30, Akamai unveiled a pessimistic outlook: US v. Rajaratnam, Government Exhibit 2562, Akamai Technologies Inc. Earnings Conference Call, Thomson StreetEvents, July 30, 2008.
Akamai’s stock fell 7.91, or 25 percent, to $23.34: Interactive Data via FactSet Systems.
Rajaratnam shorted 200,000 shares of Akamai, then another 375,000 shares and bought put options: US v. Rajaratnam, Government Exhibit 41, All Trading by Manager Code “Tam” in Akamai Securities from July 25, 2008, to July 30, 2008.
Instant-message exchange between Rajaratnam and Joe Liu: US v. Rajaratnam, Government Exhibits 2611 and 2612, copies of instant-message exchange between Liu and Rajaratnam, July 30, 2008.
Rajaratnam made $5,139,851 from the Akamai trade: US v. Rajaratnam, Government Exhibit 44, Government’s calculation of Galleon Technology fund’s profits from trades in Akamai Securities starting on July 25, 2008.
Chiesi’s New Castle funds netted $2,437,976: US v. Rajaratnam, Government Exhibit 45, Government’s calculation of New Castle’s profit from trades in Akamai starting on July 25, 2008.
“I just wanted to say thank you,” and subsequent conversation between the two: US v. Rajaratnam, Government 543-T, Transcript of a wiretapped conversation between Rajaratnam and Chiesi, July 30, 2008, at 5:30 p.m.
That evening, she headed to the Chinese consulate: Ibid.
Chapter Twenty-Eight: A Friend on the Board
“Raj?” said the cheerful voice: US v. Gupta, Government Exhibit 534-T-R, Transcript of a wiretapped call between Rajaratnam and Gupta, July,
29, 2008.
The description of Gomes and her views about Rajat: Interviews with secretaries who dealt with her.
It was early in the evening of Tuesday, July 29, 2008: US v. Gupta, Government Exhibit 534-T-R.
Rajaratnam, who was working from Connecticut: Ibid.
That coming Thursday at noon, he was going to be lunching with Gary Cohn: Ibid.
Rick Schutte was to join the lunch, as were a number of Goldman executives: US v. Rajaratnam, Testimony of Richard Schutte, April 12, 2011.
In 2008 Galleon shelled out as much as $35 million in commissions and other fees to Goldman: Ibid.
Goldman was Galleon’s largest trading partner, and the hedge fund funneled the biggest volume of its transactions through Goldman: Ibid.
One of the reasons Cohn was coming to Galleon that day: Ibid.
Goldman had about $600 million of Galleon (investor) assets in custody: Ibid.
Galleon had about $200 million of investor assets at Bear: Ibid.
Had Bear been forced to file for bankruptcy protection, Galleon would have been one company in a long line of creditors: Ibid.
Rajaratnam had heard that Goldman might be shopping for a commercial bank and subsequent conversation between him and Gupta: US v. Rajaratnam, Government Exhibit 534-T-R.
Just a month earlier, Goldman’s twelve-person board of directors was in St. Petersburg: US v. Gupta, Blankfein testimony, June 4, 2012.
Gupta’s corporate board seats and the $3.2 million he earned from them: Duff McDonald, “Rajat Gupta: Touched by Scandal,” Fortune, October 1, 2010.
The conversation between Gupta and Rajaratnam about Goldman’s board debating buying a bank or an insurer like AIG: US v. Rajaratnam, Government Exhibit 534-T-R.
Chapter Twenty-Nine: A Tragic Call
It was Thursday, September 11, 2008, and Raj Rajaratnam was starting to feel like a boxer fighting the legend Muhammad Ali: US v. Rajaratnam, Government Exhibit 616-T, Transcript of a wiretapped conversation between Rajaratnam and Anil Kumar, September 11, 2008.
The Billionaire's Apprentice: The Rise of the Indian-American Elite and the Fall of the Galleon Hedge Fund Page 52