Galleon Prosecutors Turn Attention to Ex-IBM, Intel Boys
Former IBM senior VP Robert Moffat and Intel finance exec Rajiv Goel continue to duck indictment in the Galleon hedge fund case
By: Maureen O'Gara
Jan. 22, 2010 03:15 PM
Former IBM senior VP Robert Moffat and Intel finance exec Rajiv Goel continue to duck indictment in the Galleon hedge fund case.
They were among the first six people arrested in the prosecution's dragnet in October.
McKinsey & Co partner Anil Kumar, one of the six, turned state's evidence last week and pleaded guilty to securities fraud and conspiracy to commit securities fraud. He confessed that Galleon CEO Raj Rajaratnam paid him between $1.75 million and $2 million for insider information.
The SEC now wants to add that revelation to the pile of civil charges already lodged against Rajaratnam, Kumar and the other defendants, raising the amount of money Rajaratnam allegedly got illegally from $25 million to over $52 million.
Mark Kirkland, co-founder of the former Bear Stearns hedge fund called New Castle that's implicated in the case, is finalizing a plea deal, authorities said Friday, and is expected to testify.
Kirkland was Danielle Chiesi's boss. She's the ex-beauty queen who allegedly had Moffat and ex-AMD CEO Hector Ruiz whispering secrets in her ear. Despite wire taps, she's pleaded innocent.
That leaves Moffat and Goel who, like Kirkland, were supposed to be indicted last Friday, but the authorities got a second extension until February 16.
Moffat's lawyers are trying to get the government to drop the case against him and avoid indictment altogether. Good luck. He's supposed to have told Chiesi about AMD spinning out its plants as well as given her IBM and Sun's quarterly results ahead of time.
One is tempted to think that Moffat learned the value of delay from IBM's lawyers.
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