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WSJ reports former AMD boss Ruiz shared information with insider-trading defendant

by HEXUS Staff on 28 October 2009, 00:24


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The plot thickens

The Wall Street Journal is reporting that former CEO of AMD, Hector Ruiz - now chairman of the chipmaker's manufacturing spinoff, GlobalFoundries - shared confidential information with a defendant in what appears to be a widespread and repeated incidence of insider-trading between prominent hedge funds, involving major IT companies.

According to the WSJ, Ruiz passed on confidential information to Danielle Chiesi, of New Castle, a named defendant in the case.

Other defendants include Raj Rajaratnam, who founded and runs Galleon - a multi-billion dollar New York hedge fund complex - Rajiv Goel, a director in strategic investments at Intel Capital, Anil Kumar, a director at McKinsey and Robert Moffat, senior vice president and group executive at IBM.

The indictments say the defendants traded insider information pertaining to significant market moving events like quarterly earnings, material contracts between firms, acquisitions, takeovers and reorganizations.

The scheme, which also profited from information about Intel, Google, Polycom, Hilton Hotels, Clearwire, Akamai and People Support, purportedly generated over $25 million in illicit profits.

All the defendants, including Ms. Chiesi, face federal criminal and civil charges, but all have proclaimed their innocence.

Ruiz has apparently not been charged with any wrongdoing.


HEXUS Forums :: 1 Comment

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… and now he has resigned. I wonder what is going to happen to AMD now!