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Ex-AMD Chief Tied to Insider Trading Scandal

By - Source: Tom's Hardware US | B 27 comments

Earlier this month the SEC arrested six people in the largest ever insider-trading scheme involving a hedge fund. Included were Galleon Chief Raj Rajaratnam and executives at Intel, IBM and Bear Stearns. Today we learn of AMD's Hector Ruiz's involvement.

The New York Times reported that the SEC accused the group of earning more than $20 million from illegal trading in companies like Google, Akamai and Hilton Hotels over nearly three years. The paper cites officials who say Rajaratnam is alleged to have had a huge network of informants who fed him tips for cash or in some cases for other insider information.

One example is Intel's Rajiv Goel. According to the New York Times, Goel told Mr. Rajaratnam that he was tired of working at Intel and would trade information about a potential investment in Clearwire for a job with one of Mr. Rajaratnam’s “powerful friends.” Mr. Rajaratnam went on to make a profit of $579,000 from trading in Clearwire stock.

Danielle Chiesi, a former Bear Stearns executive who worked at another hedge fund, New Castle Partners, is said to be one of the main conspirators and was among those arrested earlier this month. Bloomberg today cites a person familiar with the investigation who says Hector Ruiz is the unnamed AMD exec alleged to have provided Chiesi with information. This included details about the timing of the spinoff of AMD's manufacturing operations into a joint venture with the Abu Dhabi government, a business we now know to be AMD's Globalfoundries.

More on this Wall Street scandal as things develop. For now you can fill yourself in on all the nitty gritty details by checking out the full scoops on both New York Times and Bloomberg.

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  • 17 Hide
    Yoder54 , October 28, 2009 4:06 PM
    Why is it that it is always these rich-ass CEO's that try to cheat for some extra cash? All the while us honest, hard working, tax paying, law abiding citizens can hardly make ends meet with our bogus health insurance policies, and false promises of a prosperous future. Ain't that the shits.
  • 10 Hide
    JMcEntegart , October 28, 2009 4:03 PM
    HonisJane, there was more information in your article about other high ups in this scandal than Hector Ruiz. Why the one sided title?Glad to see the government cracking down on these people.


    Today's news about Ruiz is the most recent development in an ongoing story. That said, the whole thing is quite confusing so I wanted to include a recap of what has transpired so far. :) 
Other Comments
  • 5 Hide
    wildwell , October 28, 2009 3:19 PM
    This story isn't over, we'll keep hearing about more and more NASDAQ tech companies executives tied to this scandal.
  • 7 Hide
    huron , October 28, 2009 3:30 PM
    wildwellThis story isn't over, we'll keep hearing about more and more NASDAQ tech companies executives tied to this scandal.



    Have you heard something that we haven't? How do you know?
  • 3 Hide
    Honis , October 28, 2009 3:53 PM
    Quote:
    Ex-AMD Chief Tied to Insider Trading Scandal
    Jane, there was more information in your article about other high ups in this scandal than Hector Ruiz. Why the one sided title?

    Glad to see the government cracking down on these people.
  • 10 Hide
    JMcEntegart , October 28, 2009 4:03 PM
    HonisJane, there was more information in your article about other high ups in this scandal than Hector Ruiz. Why the one sided title?Glad to see the government cracking down on these people.


    Today's news about Ruiz is the most recent development in an ongoing story. That said, the whole thing is quite confusing so I wanted to include a recap of what has transpired so far. :) 
  • 17 Hide
    Yoder54 , October 28, 2009 4:06 PM
    Why is it that it is always these rich-ass CEO's that try to cheat for some extra cash? All the while us honest, hard working, tax paying, law abiding citizens can hardly make ends meet with our bogus health insurance policies, and false promises of a prosperous future. Ain't that the shits.
  • -2 Hide
    Honis , October 28, 2009 4:24 PM
    JMcEntegartToday's news about Ruiz is the most recent development in an ongoing story. That said, the whole thing is quite confusing so I wanted to include a recap of what has transpired so far.

    I would agree but this is Tom's first article about the scandal (unless I missed it) so this is technically all new information for Tom's readers.
  • 0 Hide
    IronRyan21 , October 28, 2009 4:26 PM
    ^Amen
  • 0 Hide
    tester24 , October 28, 2009 4:41 PM
    When did this come about? As others have stated this is the first we've heard about it... If not someone put some links up on this.
  • 8 Hide
    thejerk , October 28, 2009 4:52 PM
    HonisI would agree but this is Tom's first article about the scandal (unless I missed it) so this is technically all new information for Tom's readers.


    You bitches need to quit crying.
  • -6 Hide
    eyemaster , October 28, 2009 5:04 PM
    Yoder54Why is it that it is always these rich-ass CEO's that try to cheat for some extra cash? All the while us honest, hard working, tax paying, law abiding citizens can hardly make ends meet with our bogus health insurance policies, and false promises of a prosperous future. Ain't that the shits.


    Quite simply because you don't have the millions of $$$ necessary to invest in a company where the shares going up a few % points will make you any significant money. For example, to make 500,000 $, you need maybe 5,000,000 at a 10% increase. If you have that much money invested in a company, you won't be on the Toms Hardware forums.
  • 0 Hide
    gzhang , October 28, 2009 5:34 PM
    yep that is very true. Also a lot of not so rich people cheat too, people in restaurants I used to work hide their income and collect social security. The problem is it will cost more $$ to investigate them than the money government could collect.
  • 0 Hide
    cybrcatter , October 28, 2009 5:59 PM
    Insider trading is the easiest crime for a white collar worker to commit, which is why it's so dangerous.
  • -1 Hide
    dman3k , October 28, 2009 6:01 PM
    rich people are greedy. that's why they're rich.

    who would have thought?!?
  • 0 Hide
    cheepstuff , October 28, 2009 7:38 PM
    dman3krich people are greedy. that's why they're rich.who would have thought?!?

    poor people are lazy, thats why they are poor.

    i really dislike it when people do that, please stop.
  • 0 Hide
    ChuvelxD , October 28, 2009 8:16 PM
    cheepstuffpoor people are lazy, thats why they are poor.i really dislike it when people do that, please stop.


    Lazy is not the opposite of greedy....

    Poor people are poor because of a lack of oppourtunity. Now some poor people make opportunity for themselves and become not poor. But rich people don't even have to make opportunites for themselves, the apportunities come to them. They just latch on. This is also called the stock market.

    /amband cheepstuff for a ignorance.
  • -4 Hide
    Anonymous , October 28, 2009 9:26 PM
    Hector Ruiz had ties to G.W. Bush, it was in his bio on AMD's site.

    Bush is the epitome of a 7th generation rich kid idiot who inherited wealth and opportunity, just like ChuvelxD's excellent commentary....
  • 4 Hide
    cheepstuff , October 29, 2009 12:26 AM
    Quote:
    Lazy is not the opposite of greedy....

    Poor people are poor because of a lack of oppourtunity. Now some poor people make opportunity for themselves and become not poor. But rich people don't even have to make opportunites for themselves, the apportunities come to them. They just latch on. This is also called the stock market.

    /amband cheepstuff for a ignorance.

    i was using that as an example. i'm just saying it is wrong to say someone is greedy because they are wealthy. there are a lot of hardworking poor people in the world, and there are a bunch of lazy/greedy/whatever character flaw here people in the world. it is wrong to generalize someone by one vague characteristic alone.
  • 1 Hide
    Atticah , October 29, 2009 3:53 AM
    Quote:
    it is wrong to generalize someone by one vague characteristic alone.

  • 0 Hide
    Atticah , October 29, 2009 3:54 AM
    ^^^ why you so ignorant "micheal jackson voice" ^^^
  • -3 Hide
    wildwell , October 29, 2009 4:58 AM
    This story isn't new, the SEC has been pulling names of interest from lots of major Wall Street firms related to this scandal this month. I haven't seen news of the case on Tom's though.
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