Ex-IBM Exec. Faces Galleon Insider-Trading Sentence

Sep 13 2010 | 11:14am ET

Robert Moffat, the former IBM executive who pleaded guilty to providing insider information to a defendant in the Galleon Group insider-trading case, will learn today if he’ll spend any time in jail for his crimes.

Moffat will be sentenced in New York today, six months after pleading guilty to conspiracy and securities fraud charges. Prosecutors have asked that he be sentenced to six months in jail, Moffat’s legal team argued that he should receive probation.

Moffat admitted providing confidential information about three companies to Danielle Chiesi, then at hedge fund New Castle Partners. Chiesi is the co-defendant of Galleon founder Raj Rajaratnam and has pleaded not guilty to the charges against her.

Moffat’s lawyers have said Chiesi “played” their client, which whom she was having an affair, for the information, and that Moffat did not profit from the scam. But prosecutors countered that he knew that Chiesi would trade on the confidential information.


In Depth

Q&A: Sancus Capital And The Disruption Of The CLO Market

Oct 5 2017 | 6:28pm ET

Traditional collateralized loan obligation (CLO) funds in the U.S. market can offer...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Finding Success as Alternatives Converge

Oct 9 2017 | 4:00pm ET

Rising interest among institutional investors over the past several years has led...

 

From the current issue of