The Galleon Group co-founder Raj Rajaratnam was caught on tape by Federal prosecutors prosecuting his alleged insider trading. In one of the conversations, Rajaratnam asked his friend Anil Kumar, “Should I buy a million?” after Kumar, then a managing director at McKinsey, told him about a transaction involving Advanced Micro Devices, a McKinsey client. “You cannot go wrong,” Kumar replied.
The question is why these insiders like to run into trouble with tech companies? Martha Stewart was ImClone. Why must people be involved in these deals to profit from the technology companies? This is very strange and truly troubling. When patterns cannot be connected as technology moves so quick and prediction becomes tougher, going into insider trading has become norms for some folks. That is too bad.