Authors: Anita Raghavan
Tags: #Finance, #Business & Economics
Rajiv Goel had been Rajaratnam’s buddy since Wharton:
US v. Rajaratnam
, Testimony of Rajiv Goel, March 22, 2011.
An Indian savory snack that Goel’s wife, Alka, was particularly good at making:
Suketu Mehta, “The Outsider,”
Newsweek
, October 23, 2011.
As a thank-you for getting information on Intel’s orders, Rajaratnam said he gave two women BMWs:
US v. Rajaratnam
, Goel testimony.
He tried to find replacements for Khan:
US v. Rajaratnam
, Testimony of Adam Smith, March 29, 2011.
The development of Goel’s relationship with Rajaratnam:
US v. Rajaratnam
, Goel testimony, March 22, 2011.
“You’re a star trader”:
Ibid.
“Hey, I can help you”:
Ibid.
He lent $100,000 to Goel, who promised to pay it back:
Ibid.; Government Exhibit 1016, Email from Goel to Rajaratnam, July 20, 2005.
The purchase price of Goel’s house and the loan amount:
Deed Record for purchase of 12331 Stonebrook Court by Rajiv and Alka Goel.
The deepening of the relationship between Goel and Rajaratnam:
US v. Rajaratnam
, Goel testimony, March 22, 2011.
Rajaratnam wired $500,000:
Goel testimony, March 22, 2011, and Government Exhibit 1023, which is Goel’s Credit Suisse account statement showing that the account was opened on May 17, 2006, and received a payment of $500,000 from Rajaratnam and Asha Pabla on May 22.
The disaster with the rats:
US v. Rajaratnam
, Goel testimony, March 22, 2011.
The recapitalization of SMART Technologies and Goel’s role in it:
US v. Rajaratnam
, Government Exhibit 1046, attachment to an email from Goel to Rajaratnam, March 20, 2008.
“Get me a job with one of your powerful friends, man”:
US v. Rajaratnam
, Government Exhibit 504-T, Transcript of a wiretapped conversation between Goel and Rajaratnam, March 20, 2008.
In November 2006, when Goel was planning a trip:
US v. Rajaratnam
, Government Exhibit 1069, Email from Goel to Rajaratnam, November 17, 2006.
“Did you get an award or did you get cash?” and subsequent exchange between Goel and Rajaratnam:
US v. Rajaratnam
, Government Exhibit 504-T.
“The deal complexity is much higher”:
US v. Rajaratnam
, Government Exhibit 1046, Email from Goel to Rajaratnam, March 20, 2008.
The holidays the Goels and Rajaratnams took:
US v. Rajaratnam
, Goel testimony, March 24, 2011.
“Dad has nobody to pick on”:
US v. Rajaratnam
, Defense Exhibit 2066, email from Rajaratnam to Goel containing message from Rajaratnam’s daughters to Goel’s on June 24, 2008.
The exchange between Kumar and Rajaratnam on March 25, 2008:
US v. Rajaratnam
, Government Exhibit 506-T, Transcript of a wiretapped conversation between Kumar and Rajaratnam on March 24, 2008. The time on the call is 6:48 p.m., which reflects eastern standard time, though the time in the narrative reflects the time in Tokyo, which is thirteen hours ahead and almost 8 a.m. on March 25.
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.
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 trades 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.