No Jail for Intel Exec Who Helped Nail Rajaratnam

MANHATTAN (CN) - Former Intel executive Rajiv Goel's extensive testimony against Raj Rajaratnam wiped out the jail time he faced for giving the fallen hedge fund billionaire inside tips, a federal judge ruled.

Rajaratnam was sentenced to 11 years in federal prison, and $92.8 million in penalties, for orchestrating the largest inside trading conspiracy of its kind from his now-defunct Galleon hedge fund.

Goel helped convict him by telling a jury how he tipped the billionaire about Intel's quarterly earnings during three days of grueling testimony.

Despite their best efforts, Rajaratnam's lawyers were unable to faze Goel, according to his attorney, David Zornow.

"They taunted him," Zornow said. "They belittled him. They used every trick in the book, which was their obligation and their right."

Goel's attorney downplayed his client's role in the scheme by saying he succumbed to Rajaratnam's powers as a "master manipulator" and "clever seducer."

On Monday, U.S. District Judge Barbara Jones rewarded Goel for his testimony by keeping him out of jail, with a sentence two years of probation.

"Mr. Goel, you showed good sense in deciding to cooperate," Jones said. "I also considered the fact that other cooperators received probation."

Those cooperators include former McKinsey & Co. executive Anil Kumar and Galleon employee Adam Smith.

Assistant U.S. Attorney Reed Brodsky, who also prosecuted Rajaratnam, said that Goel provided "more [to the government] than any cooperator that testified."

Before being sentenced, Goel apologized to his family, including his wife who was seated in the courtroom.

"I am deeply ashamed for the mistakes that I made," he said.

Goel must pay a $266,649 forfeiture and a $10,000 fine.

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