Feeds

IBMer blames mistress for making him mis-talk

Hedge fund hottie played him like a fish

Bridging the IT gap between rising business demands and ageing tools

Robert Moffat, once tipped for the top job at IBM, has blamed his mistress for encouraging him to give her information which she used for insider dealing.

He is facing securities fraud and conspiracy charges, and prosecutors are asking for a six month prison sentence.

But Moffat's lawyers, speaking in mitigation, said Danielle Chiesi encouraged pillow talk and Moffat was showing off to her and did not profit from the information he provided. They also said he did not know Chiesi was using the information to trade.

In a letter to the court Moffat said his crimes were not "driven by greed or the desire to profit", but that he wanted to "appear important and knowledgeable to show Ms. Chiesi that I was 'in the know' about important matters", AP reports.

Moffat, who has already pleaded guilty, has previously said the worst loss of the episode was his reputation. He ran Big Blue's PC division, and was once considered next-in-line for chief executive or chairman of IBM.

44-year old Chiesi was an analyst for hedge fund New Castle and has pleaded not guilty to offences which could carry a 155-year sentence. She is being tried separately to Galleon Group founder Raj Rajaratnam.

The case centres on information connected to AMD's decision to spin off its chip manufacturing business, IBM's quarterly results and Sun's results during a period when IBM was considering buying the firm.

Some 21 people, including hedgies and Intel and McKinsey execs are facing charges relating to the scandal. ®

Application security programs and practises

More from The Register

next story
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
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
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
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
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.