Feeds

Big Blue union calls for probe of all IBM execs

Insider trading arrest reaction

The essential guide to IT transformation

Union organizers are rallying around the recent arrest of IBM executive Robert Moffat on insider trading charges to call for a broader investigation into all the company's heads.

Alliance@IBM, a union that represents a small number of IBM employees, posted an open letter on its website Tuesday asking the US Department of Justice and US Securities and Exchange Commission to launch a probe of all IBM executives. On behalf of current and former employees at Big Blue, the organization is an extremely vocal critic of IBM outsourcing and its downsizing of domestic operations.

"There's been an awful lot of rumor and innuendo over the years from employees who are very concerned that they see IBM taking a turn towards what they believe is unethical behavior and possibly illegal behavior," alliance@IBM national coordinator Lee Conrad told El Reg. "While this can't be proved at this point, there's an underlying feeling that this arrest of Moffat might just be the tip of the iceberg."

Moffat is senior vice president and general manager of IBM's Systems and Technology Group, and before his arrest, he was seen as an heir apparent to CEO Sam Palmisano. He, along with five others, were charged October 16 over an alleged insider trading scheme that investigators said netted $20m in illegal gains.

Moffat is accused of passing information to a portfolio manager at hedge fund New Castle Funds regarding IBM revenues and profits ahead of when the numbers went public in late 2008 and early 2009. IBM has placed the executive on leave following the charges. Moffat's attorney says his client is innocent.

In an open letter posted on its website, Alliance@IBM questions whether Moffat's alleged actions involve more than just one executive at IBM – particularly in light of Moffat being groomed to become the company's next chief executive. Conrad tells us Alliance@IBM has faxed its call to investigate to the SEC and sent it via email to the DoJ. It also plans to distribute the letter to select politicians that oversee large IBM communities, such as in New York and California.

According to Conrad, many IBM employees herald the hiring of former CEO Louis Gerstner in 1993 as the beginning of IBM's loss of respect for its workers.

"What employees feel and what the Alliance feels is that the current crop of IBM executive have pretty much broken faith with the employees and the communities that IBM does business in," he said.

The Alliance@IBM website posted a poll October 19 asking whether readers believe all IBM executives should be investigated for unethical or illegal activities in light of Moffat's arrest. The results, as of publication, are 476 voting yes; 182 voting no; and 1 vote for "not sure." This, of course, is an internet poll on a union website – so the results are almost definitely skewed.

IBM representatives did not immediately respond to our request for comment on this particular matter. ®

5 things you didn’t know about cloud backup

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.