Two top executives have stepped down after being
implicated in an insider-trading scandal involving at least six
technology companies including IBM, AMD, Intel, Google and Sun
Microsystems.
Hector
Ruiz, chairman of AMD spin-off Globalfoundaries and
Robert Moffat, senior vice-president of IBM's $19bn Systems and
Technology group, have both left their posts after being charged in
the insider trading case related to the
privately owned hedge fund sponsor, Galleon Management.
Despite stepping down, Hector Ruiz and Robert Moffat have denied
the allegations, along with four others charged in the case. These
include Galleon founder and hedge fund operator Raj Rajaratnam.
All six have been implicated in trading on non-public
information about the technology companies involved in the
case.
Ruiz, the former chief executive of Advanced Micro Devices
(AMD), is taking an immediate voluntary leave of absence, according
to a company statement. Moffat has formally retired, according to
reports.
Both
Ruiz and
Moffat have been linked with hedge fund analyst, Danielle
Chiesi, who allegedly received the inside information. However,
neither has been charged with profiting directly, according to the
Financial Times.
AMD said in a statement that Ruiz had already been planning to
leave the company. AMD said Ruiz had submitted his resignation in
September, with an effective date of 4 January.
IBM has moved quickly to replace Moffat, a 31-year IBM veteran
and one of the most trusted lieutenants of
IBM chief executive Sam
Palmisano.
Moffat has been charged with conspiracy to commit securities
fraud. He faces up to five years in prison if convicted. He also
faces fines of up to $250,000.