Former IBM exec Moffat gets six months for insider trading

EX-IBM executive Robert Moffat has been jailed for six months for his part in the Galleon hedge fund insider trading case, which prosecutors call the biggest of its kind in history.

  0 Be the first to comment

Former IBM exec Moffat gets six months for insider trading

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

The former senior vice president and group executive in charge of systems and technology was also fined $50,000 having pleaded guilty in March to conspiring to commit insider trading crimes.

Between August and October 2008 Moffat provided inside information on IBM, Lenovo - where he was a non-voting member of the board - and AMD to Danielle Chiesi, with whom he was having an affair.

Chiesi, a trader at New Castle Partners, an equity hedge fund unit of Bear Stearns Asset Management, used the non-public information to make securities transactions.

Chiesi is set to stand trial with Raj Rajaratnam - founder of the Galleon Group at the centre of the probe - and several others later this year in relation to the scam which is thought to have netted around $50 million.

Preet Bharara, Manhattan US Attorney, says: "As a senior executive at IBM, Robert Moffat was entrusted with secret and valuable information. As today's sentence reflects, illegally betraying that trust is a serious crime, and even high-flying executives do not receive get-out-of-jail-free cards for participation in insider trading."

Sponsored [Webinar] PREDICT 2025: The Future of Faster Payments in the US

Related Company

Keywords

Comments: (0)

[New Impact Study] Catering to a new generation through unified card programmesFinextra Promoted[New Impact Study] Catering to a new generation through unified card programmes