A former McKinsey & Co director who pleaded guilty to criminal charges in the Galleon hedge fund insider trading case reached a $2.8 million civil settlement with the U.S. market regulator, according to a court document on Monday.The former director of the management consultant company, Anil Kumar, was among 21 people charged last October and November in what U.S. prosecutors described as the biggest probe of illegal insider trading involving hedge funds.Eight people, some of them former friends and business associates of Galleon hedge fund founder Raj Rajaratnam, including Kumar, have signed cooperation agreements with prosecutors and may be called upon to testify at trials.Eleven former traders, executives and lawyers have pleaded guilty to criminal charges. Rajaratnam and principal co-defendant Danielle Chiesi are scheduled to go on trial on Oct. 25. They have pleaded not guilty.Monday's filing in U.S. District Court in New York, called a consent order and judgment, said Kumar "is liable for $2,600,000, representing profits gained and/or losses avoided as a result of the conduct alleged in the complaint, together with prejudgment interest thereon in the amount of $190,621" to the U.S. Securities and Exchange Commission.Kumar pleaded guilty to criminal charges of fraud and conspiracy on Jan. 7, telling a judge that Rajaratnam paid him $1.75 million in exchange for tips on clients of the consulting firm.The case is SEC v. Galleon Management, U.S. District Court for the Southern District of New York, No. 09-08811.(Reporting by Grant McCool; Editing by Steve Orlofsky)News posted by www.newsinfoline.com
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