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IBM bloke is expected to admit to AMD leakage

Galleon hedge fund insider trading case cranks up
Thu Mar 25 2010, 10:11

A FORMER SENIOR EXECUTIVE at IBM, Robert Moffat is expected to plead guilty to criminal charges in the Galleon hedge fund fraud.

Moffat will be the 11th person to plead guilty in the case prosecutors have described as the biggest hedge fund insider trading probe in the United States.

He was senior vice president of IBM's systems and technology group and once a candidate for chief executive. He has since cleaned out his desk at Big Blue and collected his pink slip.

Prosecutors claim that during phone calls intercepted by the FBI, Moffat gave out non-public information about concerning AMD. Moffat allegedly discussed a confidential business transaction that AMD was negotiating with investors from Abu Dhabi.

He was said to have had access to inside information concerning the deal because as part of the transaction, IBM would be granting a license to an entity to be spun off by AMD.

Toward the end of one call, according to the complaint, an alleged co-conspirator asked about the timing of the deal involving AMD, and Moffat replied, "six to eight weeks from my meeting."

The information allegedly was used to play the stock market in AMD shares. µ

 

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