Former AMD chief exec linked to insider trading ring

Another prominent IT executive has been implicated in the Galleon insider trading scandal that has shamed the industry.

According to the Wall Street Journal, Hector Ruiz, former CEO of chipmaker AMD, has been accused of leaking sensitive information to the Galleon hedge fund during his time as chief executive of the troubled company.

The legal documents presenting the case against Galleon refer to an unnamed AMD executive.  The Wall Street Journal cites “a person familiar with the matter” in claiming that Ruiz is the executive in question.

The information in question reportedly relates to the spin off of AMD’s fabrication wing, now known as Globalfoundaries and of which Ruiz is chairman.

Ruiz himself has not been charged, and his former employer denies the reports. “No current or former AMD employee has been charged with a crime and we’re not aware of any allegation of criminal misconduct,” AMD said in a statement.

Last week, the Securities Exchange Commision accused a senior IBM executive of disclosing sensitive information to friend and Galleon employee Danielle Chiesi. Robert Moffatt, vice president of IBM’s systems and technology group, had been tipped as a potential successor to current IBM CEO Sam Palmisano.

Galleon founder Raj Rajaratnam, one of the world’s richest men, describes the charges against him and his company as “baseless”.

Pete Swabey

Pete Swabey

Pete was Editor of Information Age and head of technology research for Vitesse Media plc from 2005 to 2013, before moving on to be Senior Editor and then Editorial Director at The Economist Intelligence...

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