19 August 2017
visit www.avoka.com

Former IBM exec Moffat gets six months for insider trading

14 September 2010  |  4798 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  |  6440 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.worldpaymentsreport.comvisit www.dorsum.eudownload the paper now

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
8812 views comments | 23 tweets | 23 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
7752 views comments | 19 tweets | 23 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
7045 views comments | 10 tweets | 7 linkedin
hands typing furiouslyWhy Blockchain Might Not Be The Future For...
6387 views 1 | 5 tweets | 3 linkedin
Apple sidelined as Beijing transit system launches payments appApple sidelined as Beijing transit system...
6246 views comments | 11 tweets | 9 linkedin

Featured job

Find your next job