Feeds

Ruiz out as Global Foundries chairman

Another casualty of Galleon-New Castle insider trading?

Bridging the IT gap between rising business demands and ageing tools

GlobalFoundries, the wafer baking spinout of Advanced Micro Devices, announced this morning that chairman Hector Ruiz has taken a voluntary leave of absence from the company, effective immediately.

Ruiz is rumored to be one of the executives who spoke out of turn about that spinout, with the information subsequently finding its way back to hedge fund operators Galleon Group and New Castle Group; this insider information was used to profit illegally in AMD share trading.

The statement from GlobalFoundries said that Ruiz had submitted his resignation from GlobalFoundries in September (a date was not supplied), with an effective date of January 4, 2010. The implication appears to be that Ruiz had already planned to step down before the insider trading scandal involving Galleon and New Castle that hit on October 16.

This scandal has implicated executives from IBM, Intel and McKinsey & Co in providing information that allowed Galleon and New Castle to gain at least $20m from illegal trades in various stocks. These included those of AMD, Akamai Technologies, Clearwire, PeopleSupport, IBM, and Sun Microsystems.

Lanny Ross, who is the former chief executive officer of chip maker Broadcom and who is a member of the GlobalFoundries board, has been tapped to be interim chairman until a permanent chairman is appointed by the board.

A spokesperson at GlobalFoundries said that Ruiz' stepping down was consistent with his stated plans as the wafer baker was being spun out. The spokesperson would not comment as to any relationship between the leave of absence that Ruiz is taking and the insider trading scandal.

Last Friday, Bob Moffat, a former high-level executive at IBM, who allegedly passed information about the GlobalFoundries spinoff as well as on upcoming quarterly results for IBM and Sun Microsystems to Danielle Chiesi at New Castle, left Big Blue. He was stripped of his titles and put on a leave of absence on October 20. Moffat used to be senior vice president and general manager of IBM's Systems and Technology Group, which makes and sells servers, storage, and chips.

Moffat was also one of the handful of executives who had risen to the top of IBM. He was a possible contender for one or more of the top jobs of president or chief executive officer, once current chairman Sam Palmisano begins the process of retiring, perhaps next year if history is any guide.

Chiesi was also sharing information with Galleon Group founder Raj Rajaratnam, and both are accused by the US District Attorneys office in Manhattan of profiting specifically on the GlobalFoundries spinout.

Ruiz has not been charged by the US District Attorneys office in connection with the Galleon and New Castle insider trading scams. But the buzz last week was that if Ruiz was the executive who talked, he could be charged just like Moffat has been.

Thus far, only anonymous sources have been quoted in Bloomberg as saying that Ruiz is the AMD executive in the original complaints filed on October 16 who provided information to Chiesi and therefore to Rajaratnam. ®

Application security programs and practises

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.