Kellogg | Mr. Danish Raised, US Based
GMAT 710, GPA 10.6 out of 12
Darden | Ms. Unicorn Healthcare Tech
GMAT 730, GPA 3.5
Stanford GSB | Mr. MBB to PM
GRE 338, GPA 4.0
Harvard | Mr. Sales To Consulting
GMAT 760, GPA 3.49
Chicago Booth | Mr. Semiconductor Guy
GMAT 730, GPA 3.3
Harvard | Mr. Polyglot
GMAT 740, GPA 3.65
Wharton | Mr. Sr. Systems Engineer
GRE 1280, GPA 3.3
Tuck | Mr. Consulting To Tech
GMAT 750, GPA 3.2
Stanford GSB | Mr. Rocket Scientist Lawyer
GMAT 730, GPA 3.65 Cumulative
Stanford GSB | Mr. Navy Officer
GMAT 770, GPA 4.0
Darden | Mr. Stock Up
GMAT 700, GPA 3.3
Stanford GSB | Mr. Classic Candidate
GMAT 760, GPA 3.9
Cambridge Judge Business School | Mr. Social Scientist
GRE 330, GPA 3.5
Darden | Mr. Federal Consultant
GMAT 780, GPA 3.26
INSEAD | Mr. Consulting Fin
GMAT 730, GPA 4.0
Duke Fuqua | Mr. Enlisted Undergrad
GRE 315, GPA 3.75
INSEAD | Ms. Hope & Goodwill
GMAT 740, GPA 3.5
Harvard | Mr. Milk Before Cereals
GMAT 710, GPA 3.3 (16/20 Portuguese scale)
Chicago Booth | Mr. Guy From Taiwan
GRE 326, GPA 3.3
Darden | Mr. Leading Petty Officer
GRE (MCAT) 501, GPA 4.0
Columbia | Mr. NYC Native
GMAT 710, GPA 3.8
Tepper | Mr. Leadership Developement
GMAT 740, GPA 3.77
Harvard | Ms. Athlete Entrepreneur
GMAT 750, GPA 3.3
Darden | Mr. Education Consulting
GRE 326, GPA 3.58
Harvard | Ms. Ambitious Hippie
GRE 329, GPA 3.9
Stanford GSB | Mr. Unrealistic Ambitions
GMAT 710, GPA 2.0
Stanford GSB | Mr. Equal Opportunity
GMAT 760, GPA 4.0

Wharton MBA Guilty of Insider Trading

A Wharton School MBA was convicted today (May 11) on all 14 counts in a highly prominent insider trading case on Wall Street. Billionaire hedge fund manager Raj Rajaratnam was found guilty of fraud and conspiracy by a federal jury in New York.

Convicted of masterminding one of the biggest insider trading scandals since Martha Stewart and Ivan Boesky, Rajaratnam now faces up to 25 years in prison when he is sentenced. He is expected to appeal the verdict.

The conviction is a sad ending to what had been a remarkable success story. Rajaratnam came to the U.S. from his native Sri Lanka in 1981 to get an MBA from the Wharton School. Armed with the degree, he first joined a small investment bank, Needham & Co., working his way up until founding his own hedge fund, Galleon Group, in 1997. At its peak, Galleon managed more than $7 billion in assets, and Forbes magazine estimated Rajaratnam’s wealth at $1.3 billion.

Another Wharton alum, Anil Kumar, who had met Rajaratnam when they were both first-year MBAs, pleaded guilty to securities fraud charges last year and testified against his old classmate in hopes of leniency at sentencing. During the trial, Kumar testified that eight years ago, when Kumar worked for McKinsey & Co., he agreed to accept half a million dollars annually from Rajaratnam to dish inside information on public companies. And a third Wharton classmate, Rajiv Goel, a former Intel mid-level executive, also has pleaded guilty to giving illegal stock tips with Rajaratnam.

The federal investigation that has led to Rajaratnam’s conviction has not only become something of an embarrassment to Wharton—but also to other highly prominent business schools whose graduates have either been accused of wrongdoing or who have already plead guilty to insider trading. Already ensnared in the mess are three Harvard Business School MBAs, including one of HBS’ most famous alums, Rajat Gupta, the former managing director of McKinsey & Co., and Adam Smith, a former Morgan Stanley banker and Galleon employee, who pleaded guilty earlier this year and testified against Rajaratnam. In a report for his Harvard Business School Class of 1999, Smith once wrote that Galleon was “the first job I’ve truly loved, and I find the challenge of the stock market exhilarating.”

Three of the world’s most prominent business schools have been dragged into the scandal by either alumni or board members: Besides Harvard and Wharton, there is also the Indian School of Business, where Gupta and Kumar were both on the board. Gupta resigned his position as chairman of ISB in March. All told, the case has led to insider trading charges against 25 defendants—21 of whom have pleaded guilty.

In convicting Rajaratnam, the federal jurors agreed with the prosecution that the Galleon chief made more than $63.8 million in illegal profits from trades based on insider tips on public companies including Hilton, Google and Intel. Until he is sentenced on July 29th, the Wharton alum is free on $100 million bail.

DON’T MISS: How A Harvard MBA Traded On Inside Information or Gupta Resigns from Indian School of Business

 

About The Author

John A. Byrne is the founder and editor-in-chief of C-Change Media, publishers of Poets&Quants and four other higher education websites. He has authored or co-authored more than ten books, including two New York Times bestsellers. John is the former executive editor of Businessweek, editor-in-chief of Businessweek. com, editor-in-chief of Fast Company, and the creator of the first regularly published rankings of business schools. As the co-founder of CentreCourt MBA Festivals, he hopes to meet you at the next MBA event in-person or online.