Prosecutors are attempting to shed light on the dark side of Wall Street in the Raj Rajaratnam insider trading trial. The star witness, as of this moment anyway, is Anil Kumar, the former McKinsey consultant whom the prosecution hopes will make a decent impression on the jury as a upright guy seduced by a criminal mastermind.

Kumar spoke about how he leaked details of ADM's plans to buy a Canadian graphics company, essentially providing information about "super confidential" negotiations between two companies. Kumar was serving as an AMD advisor at the time. Rajaratnam was ecstatic with the information and told that Galleon was "cheering" and that he was "a star" or  "a hero."

The payment aspect of their relationship was also discussed. Rajaratnam wanted to pay according to how much money his fund was making from the inside information, but Kumar wanted more of a consulting arrangement. Indeed, Rajaratnam's team will likely argue that he was merely a consultant. Recall that Kumar previously testified that Rajaratnam had been paying him $500,000 a year for inside information, which was reinvested in Galleon through an account in India under his housekeeper's name.

All in all, the picture Kumar is painting seems quite damaging, which makes it all the more imperative that Rajaratnam's team destroy him on cross. This is going to get ugly. If the once close friendship isn't over, it will be soon.

For more:
- here's a Forbes article

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