Ex-Intel executive owns up to insider trading

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Ex-Intel executive owns up to insider trading

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.

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