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Ex-IBM executive gets six months for insider trading

Slammer time
Tue Sep 14 2010, 13:08

WE REPORTED back in March that former IBM senior executive Robert Moffat, who was once lined up as a candidate for chief executive, collected his pink slip and did not pass go when he pleaded guilty to insider trading. He was the 11th person to do so in the Galleon hedge fund probe - the biggest insider trading scandal the US has seen for some time.

Now Moffat has been handed six months porridge for passing on inside information about Big Blue and AMD. According to Bloomberg, Moffat was leaking company secrets to New Castle Funds consultant Danielle Chiesi.

He was sentenced by US District Judge Deborah Batts yesterday, who took umbrage at the fact that he had spent over 30 years at IBM. He could've retired on a pension a million times larger than a hack's salary but it obviously wasn't enough for Moffat.

"Why the defendant betrayed the only employer he has had for his entire career has not been addressed," Batts said, according to Bloomberg. "His astounding breach of his fiduciary duty to his employer is why he is here."

Moffat's admitted "intimate relationship" with Chiesi suggests that some men will tell a woman anything she wants to know if he fancies her. He allegedly told Chiesi everything about disappointing server sales at Big Blue and restructuring at Chimpzilla.

Chiesi and Galleon co-founder Raj Rajaratnam allegedly went on to use the inside information to bolster their fat bankrolls with millions of dollars made in illegal stock trades. µ

 

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