In a New York City courtroom over the summer, billionaire Raj Rajaratnam was found guilty of securities fraud conspiracy. The hedge fund manager's criminal conviction is considered to be part of the biggest insider trading case in history. Now, officials and spectators of the scandal are all taking a closer look at the cries of fraud that surround the case.
What seems to be most evident in the aftermath of the conspiratorial crime is the ease with which so many business representatives and members of Wall Street willingly participated. In the world of hedge fund traders the level of corruption seems to be quite high, making it almost a casual act. However, when such behavior is entered into with little or know thought it makes the illegality of the actions and their allegations questionable. Why would so many people jump on board an act of insider training knowing full well the consequences that could follow?
The answer to this question may be found by looking more closely into the specifics of the fraudulent charge. In the case of Raj Rajaratman, several partakers in his elaborate scandal did so unknowingly. The billionaire was a mastermind of human corruption, easily able to solicit the involvement of others in illegal affairs without their knowledge. Anil Kumar, a business consultant for McKinsey, would never describe himself as a trader on Wall Street. However, upon entering into business transactions with Rajaratman this all changed.
As with most of his "co-conspirators," Rajaratman lured in Kumar by beginning with legal consulting practices and then gradually turning these practices into law-breaking behaviors which resulted in the exchange of exorbitant amounts of money. The transition was so subtle that Kumar remained unaware of his illegal behavior until the time of his arrest in 2009. Without even realizing it, Kumar had been living and participating in a world of crime, and he was now left to suffer the consequences.
Kumar's case is not an isolated incident. Bank investors too often take advantage of the ease with which they are able to mislead investors in terms of the securities being sold. Trustworthy business men and women have made similar claims of blindness to the criminal acts for which they've been convicted. This is clearly a result of lies and deceit among the top dogs of financial businesses that feel impenetrable to the potentially damaging effects of insider trading. Commentators have agreed that for some of those who partake in scandalous behavior in the financial market, the involvement is no more voluntary than their arrests and convictions. Many business savvy individuals are duped by higher-ups who prey on their subordinates in order to reap more financial gain; even if it means costing someone else their reputation and livelihood.
No one is ever pleased to hear about incidents of scandal, whether in government, on Wall Street or somewhere else. However, the outrage and offense that most people take upon hearing about fraudulent behaviors leaves little room for sympathy on behalf of those who may have suffered most. While reports of arrest and conviction make it seem as if the perpetrators have been uncovered and appropriately punished, these sentences sometimes overlook the true instigator of the problem. In the insider trading scandal led by Rajartnam, the master creator was appropriately identified and penalized.
But what about less-than-guilty parties such as Anil Kumar who were also found to be guilty and punished as such? News reports rarely focus on the suspected innocence of anyone involved in matters of financial scandal. As a result, business representatives who unknowingly involved themselves in any type of illegal act suffer much more than those who masterminded the project. In addition to losing millions of dollars, these individuals have slandered their reputations, failed their companies and must often serve prison time or some other form of repentance. To the unsuspecting eye, this might seem like due course of action, but for those in the know this is obviously a scandal in and of itself.
