Moffat, Admitted Galleon Tipster, Gets Six Months

Sep 14 2010 | 1:14am ET

Robert Moffat, the former top IBM executive who admitted to tipping off an alleged member of the Galleon Group insider-trading ring, was sentenced to six months in prison.

U.S. District Judge Deborah Batts imposed the sentence sought by prosecutors. Moffat’s legal team had argued that he should be sentenced to probation and spared jailtime.

“Why the defendant betrayed the only employer he has had for his entire career has not been addressed,” Batts said. “His astounding breach of his fiduciary duty to his employer is why he is here.”

Moffat pleaded guilty to conspiracy and securities fraud in March. He admitted passing confidential tips about IBM and two other companies to Danielle Chiesi, then at hedge fund New Castle Partners. Chiesi, with whom Moffat was having an affair, is the co-defendant of Galleon founder Raj Rajaratnam and has pleaded not guilty to the charges against her.

Moffat, one of a dozen people to plead guilty in the case, will not have to begin serving his sentence until next June. After his release, he will have to pay a $50,000 fine.

All told, 21 people have been charged in the Galleon case.


In Depth

Q&A: Rotation Capital's Rothfleisch On SPAC 2.0

Aug 11 2017 | 7:43pm ET

Corporate actions have long been a staple of event-driven investors, but activity...

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

Star Mountain: Private Lending in the Lower Middle-Market

Aug 14 2017 | 4:45pm ET

Private credit has become one of the most popular alternative asset classes in recent...

 

From the current issue of