On Friday, 10/16, a billionaire hedge fund boss and 5 others were charged in
$25M-plus insider trading case.

See--
http://finance.yahoo.com/news/Billionai ... 94948.html?\
x=0&sec=topStories&pos=1&asset=&ccode=

Among those arrested was Anil Kumar, a McKinsey Director, and one of the
industry's godfathers of knowledge process outsourcing.

http://www.spendmatters.com/index.cfm/2 ... McKinsey-D\
irector-Anil-Kumar-Arrested

Godfather of KPO and McKinsey Director Anil Kumar Arrested
Posted At : October 16, 2009 12:54 PM
Jason Busch

I usually don’t cover stories like this, but because of the importance of the
subject and some personal connections, I thought it would be worth offering up
an insider take (pun intended). Earlier today, as reported in the Wall Street
Journal and Market Watch, a billionaire hedge fund manager was arrested for
insider trading. "So what?" you might say. Another financial fat cat will end up
in Club Fed. Madoff this year, Raj Rajaratnam next. But there’s a fascinating
side note to this story in that a McKinsey Director, Anil Kumar, one of the
industry's godfathers of knowledge process outsourcing (KPO), was also arrested
as part of the scheme. A friend once told me that McKinsey does not make many
mistakes when promoting to the partner level (I’ve worked with a number of
former McKinsey consultants over the years and can vouch for this). But he told
me they never make a mistake when promoting to Director (the equivalent of
senior partner). Well, maybe not until now.

Perhaps a little bit of history is in order in this case. Kumar, who was
arrested with a number of other executives earlier today in the same insider
trading scandal, was no typical consulting partner. As mentioned above, he was a
leader and innovator in the area of knowledge process outsourcing. According to
the book Information Systems Outsourcing: Enduring Themes, Global Challenges,
and Process Opportunities edited by Rudy Hirschheim, “The international
consulting firm McKinsey initiated a project in 1995 led by Anil Kumar to
exploit reductions in global telecommunications rates that would create
opportunities for 'remote business services' … this led McKinsey to establish
a knowledge center in Delhi whereby staff and researchers would develop models
and analyse trends for McKinsey consultants worldwide.â€