David Vaclav Palecek (August 8, 1972 – February 16, 2010) was a junior partner at management consultancy McKinsey & Company and a protégé of Anil Kumar accused in the related Galleon Group insider trading cases with Kumar and former classmate Rengan Rajaratnam of leaking inside information about semiconductor company AMD while head of the semiconductor practice at McKinsey. He graduated with a BS from UC Davis and an MBA from the Stanford Graduate School of Business. He died in 2010 from complications of a staphylococcus infection.
Career Palecek was born in Virginia and grew up in the wealthy suburb of Atherton, California. He graduated from Menlo-Atherton High School, UC Davis, and the Stanford Graduate School of Business before working at McKinsey and Company in the Palo Alto office, where he rose to junior partner and head of the semiconductor practice. Palecek was described by colleagues as a likely candidate for eventual promotion to senior partner before dying from a staphylococcus infection in 2010.Tribute paid after death of 'likely director'
Galleon Group implications
Palecek was a protégé of senior partner Anil Kumar and the business school classmate of Rengan Rajaratnam, a portfolio manager at the Galleon Group hedge fund and the younger brother of its owner Raj Rajaratnam. Trial testimony revealed Palecek telling Rengan that "my best ideas are inside information."Raj Rajaratnam Favored Chiesi’s Tips on AMD, Kumar Tells Jurors Rengan Rajaratnam also described Palecek as "dirty" and tried to hire Palecek's wife as a consultant to Galleon.Ex-McKinsey Director ‘Terrified’ When Rajaratnam Sent Documents His family's lawyer has denied all involvement.Jury Hears Dozen Taped Calls at Galleon Trial Raj Rajaratnam is currently serving a 14-year sentence for securities fraud; Kumar pleaded guilty and was sentenced to probation; Rengan Rajaratnam was arrested by the FBI in March 2013 but was acquitted in 2014 after being found not guilty at trial.Brother of a Fallen Hedge Fund King Pleads Not Guilty
As the third McKinsey partner—in addition to former mentor Kumar and Kumar's mentor (and former McKinsey CEO) Rajat Gupta — implicated in the criminal investigation of the Galleon Group, Palecek's involvement prompted media speculation and pressure as to McKinsey's wider role in the investigation.Does McKinsey Need To Call An Emergency Meeting Because Of The Raj Trial?Kumar says he was ‘terrified' to see Intel papers
References
External links McKinsey implicated in Galleon trial Third McKinsey partner named in insider trading trial Third McKinsey exec named in Galleon case McKinsey exec linked to scheme after death