Tuesday, 25 October 2016
Last updated 18 min ago
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.