More fallout from the Galleon hedge fund insider trading case has come, as another former IBM (NYSE:IBM) executive Robert Moffat, has plead guilty to charges of securities fraud and conspiracy.
There wasn't much wiggle-room here, as conversations by Moffat were recorded by the FBI which there wasn't any real defense against, prompting the guilty plea.
Others named as defendants in the case were former New Castle Funds LLC trader Danielle Chiesi and Galleon founder Raj Rajaratnam, among a number of others, who have already pleaded guilty. Allegedly it is the largest hedge fund insider trading case in America, according to prosecutors.
Moffat plead guilty to charges he gave confidential information to Chiesi, which was what he had been charged with. Prosecutors said the insider information he had access to was in relationship to a licensing deal with Advanced Micro Devices, which he then let Chiesi know about.
Altogether 21 people have been charged and/or arrested in the case, some executives, and other traders or lawyers.
While pleading guilty, the plea won't be formalized by the judge presiding over the case until a later time.
Moffat at one time had been considered a potential candidate to become the CEO of the company, and was the senior vice president of the systems and technology unit at IBM.
Sentencing in the case is scheduled for July 26, where Moffat faces a prison sentence up to 6 months long.
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