Thursday, September 21, 2023
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IBM Exec Pleads Guilty to Inside Trading

MANHATTAN (CN) - A former senior vice president for IBM pleaded guilty Monday to federal charges in what prosecutors call the biggest hedge fund inside trading case in history. Robert Moffatt Jr., 53, admitted passing inside dope to Danielle Chiesi, who worked for New Castle Partners, federal prosecutors said. Chiesi, who has pleaded not guilty to inside trading charges, is awaiting trial.

Moffatt passed along information about IBM and its Chinese branch, Lenovo - on whose board he sat as a nonvoting member - and about Advanced Micro Devices, according to the federal information.

The plea is one in a continuing series in which federal prosecutors are trying to draw a noose around Raj Rajaratnam, the founder of the Galleon Group hedge funds, and the richest Sri Lankan-born person in the world.

Moffatt faces up to 20 years in prison for conspiracy and securities fraud at his July 26 sentencing.

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