1IBM, Intel Executives Involved in Ongoing Insider Trading Case
The $25 million insider trading scandal that touched such IT heavyweights as AMD, IBM and Intel has now lead to charges against six people from Silicon Valley and Wall Street. The case continues to roil both coasts. Federal prosecutors say executives from IBM, Intel and McKinsey & Co. gave nonpublic information on such companies as AMD, Sun Microsystems, Google, PolyCom and Akamai to two directors at two hedge funds, Galleon Management and New Castle Funds, which used the information to make their trades. Most of the companies are cooperating with investigators, and some – including Intel, McKinsey and Akamai – reportedly are conducting their own internal probes. Intel also put Rajiv Goel, an executive with its treasury department, on administrative leave after the charges were brought against him and five others. Here, eWEEK offers a look at who is involved with the case.
The former CEO at AMD and chairman of Globalfoundries, Ruiz has not been charged in the case nor named in court documents. However, the Wall Street Journal reported that Ruiz was the unnamed “AMD executive” who allegedly gave information to Chiesi regarding the Globalfoundries negotiations. He has stepped down as Globalfoundries chairman, though the company has not linked his resignation to the scandal.
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