Saturday, 27 August 2016
Last updated 6 hours ago
Nov 9 2010 | 11:34am ET
A former Intel Corp. managing director who admitted to passing confidential tips to Galleon Group founder Raj Rajaratnam has settled civil charges stemming from the insider-trading case.
Rajiv Goel, who worked for Intel's venture capital arm, agreed to pay $254,000 to settle Securities and Exchange Commission charges. Goel, a longtime friend of Rajaratnam's, also agreed to be barred from acting as an officer or director of a public company. The settlement comes eight months after Goel pleaded guilty to criminal conspiracy and securities fraud charges.
Goel is cooperating with prosecutors in the case against Rajaratnam, his friend of 25 years. He admitted passing on tips about both Intel and wireless broadband company Clearwire Corp. Goel profited from the tips through trades allegedly made by Rajaratnam in a brokerage account in his name.
Rajaratnam has pleaded not guilty to the charges and goes on trial in January. The SEC said he earned $579,000 in profits based on a Goel Clearwire tip.
Goel faces up to 20 years in prison when he is sentenced. He is one of 12 people to have pleaded guilty in the Galleon case; a total of 21 people have been charged.