McKinsey Suspends Executive Suspected of Insider Trading
Poll finds majority believe insider trading common in Silicon Valley.
By JACKSON WEST
Updated 2:30 PM PST, Wed, Oct 28, 2009
Anil Kumar, a director at consulting firm McKinsey & Company and a Saratoga resident that pioneered the company's outsourcing efforts, has been indefinitely suspended by the firm following his arrest amidst accusations of insider trading.
The company isn't immediately going to do an internal investigation over worries it might interfere with the efforts of federal officials.
Kumar stands accused of trading insider tips about Advanced Micro Devices to investors at the Galleon Group hedge fund, and is currently out on bail.
Just how widespread is insider trading in Silicon Valley?
A recent survey by the Business Journal found 61 percent of those who responded believed it was prevalent, with only 5 percent feeling that it is rare.
If that's the case, the Security Exchange Commission may have only indicted the tip of the iceberg.
Jackson West does not have any hot stock tips.
Copyright NBC Local Media
First Published: Oct 28, 2009 1:45 PM PST
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