Ex-boss of AMD linked to Galleon fraud probe
Hector Ruiz fingered
The ex-boss of AMD Hector Ruiz could face charges relating to the Galleon insider trading case.
Ruiz - former chief executive of AMD and now chairman of Globalfoundries - is accused of passing information on to hedge fund manager Danielle Chiesi, not of profiting personally.
Court documents reveal that an executive at AMD told Chiesi that the company planned to spin off its manufacturing business into GlobalFoundries in September, ahead of the official announcement in October. Chiesi worked for hedge fund New Castle and sought to profit from the information. She is also accused of getting inside info from senior IBM executive Robert Moffat.
Ruiz was fingered by anonymous sources talking to Bloomberg. Ruiz and GlobalFoundries, declined to comment. Ruiz has not been charged with any offence.
Executives from Intel have also been dragged into the case, which the FBI describes as the world's largest ever insider trading case. It is also the first time that wire-tap evidence has been used to bring insider trading charges.
The $20m scam still has a long way to unravel and is dragging in most of the biggest names in the industry - Google recently dropped its investor relations firm Market Street Partners over allegations that one of its staff leaked Google's numbers to someone at Galleon.
IBM executive Robert Moffat has been suspended after he was arrested and charged with conspiracy. ®