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Former IBM executive pleads guilty to insider trading in Galleon probe

By Bernard Hibbitts (editor) and University of Pittsburgh School of Law students.

[JURIST] Former International Business Machines Corp. (IBM) senior vice president Robert Moffat pleaded guilty Monday to conspiracy and securities fraud charges stemming from his involvement in the largest hedge fund insider trading case in US history. US Attorney Preet Bharara said, " willfully ignored his professional and legal responsibilities," and provided inside information in breach of fiduciary duties, facilitating illicit securities transactions. Moffat's plea is in connection with the probe surrounding Galleon Group hedge fund founder Raj Rajaratnam and former hedge fund consultant Danielle Chiesi. Moffat's conviction is the eleventh among 21 people currently under investigation by the Department of Justice. Last month, a federal judge decided Rajaratnam's criminal trial will begin October 25. Former Intel Capital executive Rajiv Goel pleaded guilty to insider trading charges in connection with the Galleon probe earlier in February. Rajaratnam, Chiesi, Goel, and Moffat were arrested in October and charged along with two other individuals and two business entities with insider trading. The complaint alleged that the individuals provided Galleon Group and another hedge fund with material nonpublic information about several corporations upon which the funds traded, generating $25 million in illicit gain. Rajaratnam and Chiesi pleaded not guilty in December after being indicted for insider trading.

Full post as published by JURIST - The Paper Chase on March 29, 2010 (boomark / email).