Executive charged in Galleon case leaves IBM
A high-ranking IBM executive charged with insider trading connected to the Galleon Group has left the company.
Robert Moffat, a senior vice president who was once thought to be a possible future IBM chief executive candidate, had been placed on leave following charges brought by the U.S. Attorney earlier this month against him and five others.
The case revolves around Raj Rajaratnam, who founded the Galleon Group, a New York-based hedge fund that manages $7 billion in funds. Federal prosecutors charged Rajaratnamm and five others, including Moffat, with securities fraud, alleging they were involved in insider trading of well-known tech companies, including Intel, Google, AMD, and IBM.
The government alleged that Moffat discussed future IBM and Sun Microsystems earnings announcements and the reorganization of Advanced Micro Devices with Danielle Chiesi, an employee of New Castle, a hedge fund.
Moffat "is no longer an employee of IBM," according to a statement by IBM on its internal communications network.
Rod Adkins, who was named acting head of IBM's Systems and Technology Group on October 19, has been appointed senior vice president, STG, according to IBM. Adkins, 51 years old, joined IBM in 1981, and has held a variety of product development, business operations, and general management positions.
Adkins served as general manager of desktop systems at the former IBM PC company. He also was general manager for Unix systems in the Systems and Technology Group.
Kerry Lawrence, Moffat's lawyer has said Moffat was "shocked" by the charges. Alan Kaufman, Chiesi's attorney, said his client would plead innocent to the charges.
Brooke Crothers has served as an editor at large at CNET News, an editor at Dow Jones' Asian Wall Street Journal Weekly, and a senior editor at InfoWorld. His CNET blog covers chip technology and computer systems, and how they define the computing experience. He also contributes to The New York Times' Bits and Technology sections. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure. Follow Brooke on Twitter @mbrookec. 
Greed? Heck, they have millions!
The thrill of it? They could buy an awesome roller coaster or something with those millions!
Fact is, a lot of 'highly qualified' people are selling companies a bill of goods, like common spammers.
When the markets down I don't trust those that abuse litigation looking for heroism. It's reckless and disrespectful to those who drive the economy forward. When the economy is up too high that's A different matter over abuse of fraud is not a good thing for real economics. This case involves petty cash in a time of economic difficulty and I do not consider the FBI the heroes in this case just down right idiots.
Fraud is against the law, whether it is small or big. Stealing 'petty cash' is stealing. The FBI has an obligation to taxpayers to go against any fraud, whether you think it's petty or not.
- by fairandbalanced2010 October 31, 2009 8:51 AM PDT
- If the truth comes out that these people committed illegal insider trading they should be prosecuted.
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