IBM Exec. Poised To Plead Guilty In Galleon Case

Mar 24 2010 | 12:32pm ET

Former IBM executive Robert Moffat is set to become the 11th person to plead guilty in the Galleon Group insider-trading scandal.

Prosecutors said yesterday that Moffat will waive indictment and will instead be charged in a criminal information, which indicates that he plans to enter a guilty plea. It is unclear whether Moffat is cooperating with the investigation, as most of those who have previously pleaded guilty have done.

Moffat, once considered a possible CEO candidate at IBM, was senior vice president and group executive at IBM’s systems and technology group. He has been free on $2 million bail since his arrest in October, accused of passing on confidential information about IBM, Sun Microsystems and Advanced Micro Devices to Danielle Chiesi, a former executive at hedge fund New Castle Partners. He has previously denied any wrongdoing.

Chiesi is currently the co-defendant of Galleon Group founder Raj Rajaratnam. Both have pleaded not guilty, as have seven others. To date, 10 of the 21 individuals charged in the alleged $50 million insider-trading scandal have pleaded guilty.

Moffat is scheduled to appear in court for a hearing on Monday.


In Depth

Star Fund Managers Battered By Rocky Ride In Yields, Currencies

May 28 2015 | 6:05am ET

Some of the biggest names in the investment world have been whipsawed by the recent...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

The Road To Tax Alpha

May 28 2015 | 5:36am ET

Tax-related alerts are increasingly helping investment managers harvest tax alpha...

 

Sponsored Content

Editor's Note