Feeds

Ex-Intel exec pleads guilty to insider trading

Admits outing Intel earnings, WiMAX plans

Boost IT visibility and business value

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. ®

Boost IT visibility and business value

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
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
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

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.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.