MANHATTAN (CN) – A former Intel executive pleaded guilty Monday to a two-count information charging him with conspiracy and securities fraud for his role in what federal prosecutors call the largest hedge fund inside trading case in history.
Rajiv Goel pleaded guilty to conspiring to commit inside trading with Raj Rajaratnam, a former portfolio manager for Galleon Technology Offshore.
According to prosecutors, Goel gave Rajaratnam inside tips on Intel, “with the understanding that Rajaratnam would trade in securities based on that inside information.”
Goel and Rajaratnam met in the 1980s in business school.
Rajaratnam was charged last December with five counts of conspiracy to commit securities fraud and six counts of securities fraud, each punishable by up to five years in prison and fines.
Prosecutors say the inside trading involved shares in Hilton Hotels, Google, Clearwire, Advanced Micro Devices, Polycom and other companies.
Goel faces up to 25 years in prison.