19 October 2017

Former IBM exec Moffat gets six months for insider trading

14 September 2010  |  5252 views  |  0 digital fingerprints

EX-IBM executive Robert Moffat has been jailed for six months for his part in the Galleon hedge fund insider trading case, which prosecutors call the biggest of its kind in history.

The former senior vice president and group executive in charge of systems and technology was also fined $50,000 having pleaded guilty in March to conspiring to commit insider trading crimes.

Between August and October 2008 Moffat provided inside information on IBM, Lenovo - where he was a non-voting member of the board - and AMD to Danielle Chiesi, with whom he was having an affair.

Chiesi, a trader at New Castle Partners, an equity hedge fund unit of Bear Stearns Asset Management, used the non-public information to make securities transactions.

Chiesi is set to stand trial with Raj Rajaratnam - founder of the Galleon Group at the centre of the probe - and several others later this year in relation to the scam which is thought to have netted around $50 million.

Preet Bharara, Manhattan US Attorney, says: "As a senior executive at IBM, Robert Moffat was entrusted with secret and valuable information. As today's sentence reflects, illegally betraying that trust is a serious crime, and even high-flying executives do not receive get-out-of-jail-free cards for participation in insider trading."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

IBM exec among six charged over tech insider trading scheme

IBM exec among six charged over tech insider trading scheme

19 October 2009  |  6885 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.capgemini.comvisit www.fivedegrees.nl

Who is commenting?

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
15825 views comments | 12 tweets | 4 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
8958 views comments | 16 tweets | 23 linkedin
satelliteGates Foundation backs Ripple collaboratio...
8056 views comments | 13 tweets | 10 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
7149 views comments | 9 tweets | 17 linkedin
Santander InnoVentures leads $6m funding round for Mexico's ePesosSantander InnoVentures leads $6m funding r...
6292 views comments | 6 tweets | 3 linkedin

Featured job

to £70K base, £105K ote, benefits
London, UK

Find your next job