Much has been made of the fact that the disgraced ex-McKinsey consultant Anil Kumar had been turned by federal investigators. His testimony against his friend was widely anticipated. Before the trial, few knew the exact contours of their relationship, but it was all put on early display in the trial of Raj Rajaratnam, who faces 20 years for insider trading. 

The two forged a relationship at the University of Pennsylvania's Wharton School, and carried that friendship into their careers, notes Dealbook.

Kumar said he twice tried to set up a formal consulting arrangement between Galleon and McKinsey, but Rajaratnam always said no. He pulled him aside at a party and said he wanted Kumar's insights, not McKinsey's. He offered $500,000 a year.

Kumar turned his friend down initially, citing McKinsey rules. But Rajaratnam found a way to keep the relationship secret via a Swiss acount. He also proposed investing the money he paid Kumar into hedge funds in the name of Kumar's housekeeper. 

Kumar eventually gave in and started passing information. And that led to his downfall.

It will get personally painful soon, as the defense takes a crack at Kumar. They will try to destroy his credibility and impugn his character to save their client. So this trial is going to get even more interesting.

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