Saturday, 28 May 2016
Last updated 1 day ago
Feb 9 2010 | 12:30pm ET
One of Raj Rajaratnam’s alleged tipsters admitted yesterday that he passed confidential information to the Galleon Group founder, a friend of 25 years.
Rajiv Goel, who until December worked at Intel Corp.’s venture capital arm, became the ninth individual to plead guilty in one of the largest insider-trading cases in Wall Street history. A total of 21 people have been charged in the case, nine others, including Rajaratnam, have pleaded not guilty. Goel pleaded guilty to conspiracy and securities fraud.
Goel admitted that he passed along non-public information both about Intel and Clearwire Corp., a wireless broadband company that Intel invested in.
“Although we lived very different lives, we kept in close contact and I received money from him for personal financial needs,” Goel said in court of his Wharton School classmate. “Over a number of years, he made trades that made me profits.”
“I knew it was wrong to give Raj Rajaratnam information,” he added. “I gave it to him because of my friendship.”
Goel, like seven of the eight others who have pleaded guilty, is cooperating with investigators. He faces up to 20 years in prison when he is sentenced on May 28.