Former IBM Exec Pleads Guilty to Security Fraud

A former senior IBM executive pleaded guilty on Monday to securities fraud in a case that has also reached the executive ranks at high-tech giants Intel and Advanced Micro Devices.

Robert Moffat, once thought to be a candidate for chief executive at IBM, pleaded guilty to one count of conspiracy to commit securities fraud and one count of securities fraud at a Manhattan federal court, according to the Associated Press. He will face up to six months in prison, based on federal sentencing guidelines.

Moffat, 53, provided confidential information about a reorganization at chipmaker Advanced Micro Devices, among other confidential data.

"I disclosed this information in this case intentionally and I knew that what I was doing was wrong," he said, according to the AP report.

The federal case revolves around Raj Rajaratnam, who founded the Galleon Group, a New York-based hedge fund. Federal prosecutors charged Rajaratnam and others, including Moffat, with securities fraud, alleging they were involved in insider trading of well-known tech companies, including Intel, Google, AMD, and IBM. Rajaratnam remains free on $100 million bail.

Moffat's action follows a guilty plea from Intel executive Rajiv Goel in February. Goel, a former Intel treasury department executive, admitted to providing Rajaratnam, in 2007, with details about Intel's earnings before the information was publicly available. He also told Rajaratnam about a future Sprint Nextel joint venture that Intel had targeted for a $1 billion investment.

And former AMD chief executive Hector Ruiz, while not charged, resigned as chairman of AMD spin-off Globalfoundries when it emerged that he was linked to the complaint filed in October by the U.S. attorney for New York's Southern District against Rajaratnamm and others.

print this article

Return to internet news headlines
View Internet News Archive

Share with: