Feeds

Ex-Intel exec pleads guilty to insider trading

Admits outing Intel earnings, WiMAX plans

SANS - Survey on application security programs

Former Intel executive Rajiv Goel has pleaded guilty to two charges of conspiracy and securities fraud in connection with the Galleon insider trading case. Goel is the tenth person to plead guilty in the case, which the FBI and the US attorney's office in Manhattan call the largest hedge fund inside trading case in US history.

On Monday, the US attorney's office for the Southern District of New York announced that Goel pleaded guilty to passing insider information to Raj Rajaratnam, founder and managing director of Galleon Group, a $7bn New York hedge fund. In October, Rajaratnam, Goel, and three others were arrested and charged with insider trading involving Galleon. Those charged also included Robert Moffat, the former senior vice president and general manager of IBM’s Systems and Technology Group.

In total, 22 people have been charged in the case.

Rajaratnam, 52, was ranked number 559 on Forbes magazine’s most recent list of the world’s wealthiest people, with a net worth of $1.3 billion. Goel was the director of strategic investments in Intel’s treasury department. He took a leave of absence from Intel following his arrest and later left the company.

According to the US attorney and FBI wiretaps, Goel provided Rajaratnam with inside information on Intel's quarterly earnings in April 2007. In 2008, the US attorney says, he also provided inside information on the joint venture between WiMAX outfit Clearwire and Sprint Nextel, which was eventually backed by a $1bn investment from Intel. Goel and Rajaratnam met in the 1980s while attending the same business school.

“I cannot express how sorry I am for my conduct,” Goel, 51, said in court on Monday, according to The New York Times. “I intend to do the right thing.”

Rajaratnam has pleaded not guilty and is currently out on bail. Robert Moffat, who left IBM in the wake of his arrest, has also denied charges against him in the case. ®

High performance access to file storage

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.