Feeds

Ruiz out as Global Foundries chairman

Another casualty of Galleon-New Castle insider trading?

Top 5 reasons to deploy VMware with Tegile

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. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.