Robert Moffat’s dreams to be CEO at IBM have all but swept with the high profile case in which Raj Ratnam of Galleon Management has been charged of insider trading fraud along with co-conspirators. Robert Moffat was serving as the Senior Vice President at the time he was apprehended along with other accomplices. He was the favorite for the position of CEO. As the pieces of the puzzle have started fitting in, it is revealed that as AMD partnered with Advanced Technology Investment Company of Abu Dhabi and a new company was created IBM’s Moffat leaked the information. ATIC was also partnering with IBM.
The information was used by the Galleon Management and two other companies to predict market trends. Rajratnam, 559th wealthiest man of the world, built an empire on these information. Rajratnam was caught as he was about to take a flight to London. Apparently he has again received insider information about his arrest by FBI! The case is being regarded as the biggest hedge fund insider information scam. It is obvious by the fact that FBI got court permission to wiretap the phones of the persons involved in the fraud. Usually wiretapping is used as a tool of last resort. As prosecutor put the pieces of the puzzle together the magnitude of the conspiracy became clear. They warned Wall Street to wake up to the cases like this one.
Hilton group was being acquired by a private company and the information was passed on to Galleon Management. Galleon acting immediately, invested heavily in the Hilton shares. The deal earned some $4 Million to Galleon.
Robert Moffat’s attorney says that the case is hocking.
Robert Moffat
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