Ex-Intel executive owns up to insider trading

By Iain Thomson on Feb 10, 2010 12:03 AM
Filed under Finance

Admits passing classified information for private gain.

The former managing director of Intel Capital has pleaded guilty to conspiracy and securities fraud as part of an investigation into insider trading at the Galleon Group hedge fund.

Rajiv Goel admitted to passing on Intel's earning reports to his contact at Galleon before they were released, as well as details about a planned deal between Clearwire Corporation and Sprint Nextel in which Intel had invested.

"I cannot express how sorry I am for my conduct," Goel said in a Federal District Court in Manhattan on Monday, according to reports in The New York Times. "I intend to do the right thing."

Goel will be sentenced in May and faces a possible 25 years in prison. He remains free on bail of US$750,000 ($859,800), and is helping investigators with the case.

FBI agents tapped the phones of Galleon chief executive Raj Rajaratnam, and heard Goel pass on the insider information. Goel met Rajaratnam at the Wharton School earning his business degree.

One other former Intel executive, Roomy Khan, has also pleaded guilty to passing information to Galleon, along with other staff from Silicon Valley firms, including IBM.

Rumours abound that Hector Ruiz, former head of GlobalFoundries, and former chairman of AMD, may also be involved.

Ex-Intel executive owns up to insider trading

1 comment in this discussion

"It never fails to astound me at the greed of corporate executives and politicians, and this over-sized elephant is no different. This corporation was paid for with public funds but owned by the ..."

By BernieG

Tags

galleon, goel, former, executive, information, insider

Deloitte absorbs SAP consultancy Logro

Exclusive: NBN Co withholds fibre upgrade price

Are Australian execs laptop huggers?

Queensland Govt breaks out CIO role

Breaking Stories

BigPond emails will be stored overseas

Google shapes as digital dividend dark horse

Oracle buys Taleo for $1.76 billion

Scientists tout super-fast hard drives

Alstom Transport eyes single project system

Comments: 1

BernieG

Feb 10, 2010 7:55 AM

It never fails to astound me at the greed of corporate executives and politicians, and this over-sized elephant is no different. This corporation was paid for with public funds but owned by the government of the day, then largely bought back off the government with more of the general public's private funds. SO in a way, the people of this country paid for it twice!

Deregulation of the industry has been a benefit for the consumer in lower prices and better services, but also for overseas interests such as Singtel, who now own Optus; so our better services and lower prices were bought at the expense of selling some of our national assets to foreigners.

And so it persists. Inch by inch this country sells out. In all sectors 'de-regulation' is hailed as a boon, but look what it has doe to the finance sector (GFC), and in the housing industry, prices which have doubled since deregulation.

We are no better off now as a nation than when Telstra (formerly Telecom) had a monopoly on the market. Dollar for dollar and service for service, we are no better off.

What is REALLY required is strong leadership in government, all the way through the government system. There is no reason why this nation can't have an effective and efficient, government-owned, monopolistic telecommunications company, that gives excellent services at a fair price to ALL Australians.

De-regulation is a curse - and this move to de-structure this company is equally accursed and just another nail in the country's coffin.

If we had the stones, we'd buy Telstra back, kick out the competition, and restucture it in ways to make people who work there proud and cutting edge.

But in truth, we don't have the courage, and its really too late to fix the problem.

Eventually we will sell the entire country.

Its quite sad.