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: Legal Pad | LA

Goel pleads guilty in Galleon case

By Richard Binder

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Rajiv Goel, a former Intel Capital director who was arrested in San Jose, California, last October, pleaded guilty on Monday to fraud in the Galleon insider trading case. He told a New York court that hedge fund founder Raj Rajaratnam gave him money for personal needs and that he profited from illegal trades.

Goel admitted to conspiring with Rajaratnam on confidential information about Intel Corp.'s quarterly earnings and on investments by Intel in Clearwire Corp. Goel says he gave Rajaratnam the information because of their longtime friendship. The two had met 25 years ago at the Wharton School of Business.

The charges carry a prison sentence of up to 20 years. A sentencing proceeding is scheduled for May 28.

Full Reuters story here.

Full post as published by Legal Pad | LA on February 09, 2010 (boomark / email).

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